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Hyzon Zero Carbon Alliance: Driving scale, speed and collaboration in hydrogen mobility

June 6, 2021

Original article published by H2 View by Joanna Sampson.

At the vanguard of the global hydrogen revolution for commercial vehicles, it’s clearly an exciting time for Hyzon Motors. But as the company pioneers the roll out of hydrogen-powered commercial and heavy-duty vehicles globally, it recognises collaboration is going to be crucial in the build-out. It was for this reason Hyzon Motors established the Hyzon Zero Carbon Alliance in April.

“The company recognises that as a first mover, we have an obligation to play a leadership role in the development of hydrogen supply chains, yet. We cannot do this alone. We believe that strategic alliances will be the key to unlocking hydrogen mobility’s potential,” Claire Johnson, Head of the Hyzon Zero Carbon Alliance told H2 View.

“We established the Hyzon Zero Carbon Alliance as a dedicated entity to mobilise customers and industry to forge partnerships that create ecosystems and accelerate the adoption of hydrogen mobility worldwide.

“The Alliance will drive scale, speed and collaboration while bringing down costs through harnessing the power of a united industry approach. By bringing together best in class industry players from across the entire hydrogen value chain and supporting sectors, we intend to provide the platform to collaboratively develop projects and packaged end-to-end solutions, offering mobility as a service to hydrogen mobility customers.”

Tipping point

Hyzon Motors believes hydrogen mobility is at a tipping point and set to scale rapidly over this decade. Launching the Alliance now forms a critical piece of the company’s strategy to ensure the underlying supply chain is in place for increasingly larger scale uptake of hydrogen vehicles.

“Hyzon has been actively working with companies from across the global hydrogen supply chain since its inception in early 2020. We have formed strategic partnerships with organisations focusing on hydrogen production, refuelling, insurance and finance to name a few, so it made sense to consolidate this collective of expertise and resources into a single platform,” Johnson explained.

Read more: The global hydrogen revolution for commercial vehicles is here, and Hyzon Motors is at the vanguard

Read more: Hyzon Zero Carbon Alliance launched to advance hydrogen mobility supply chain

“Our foundation members are made up of those companies we have been actively working with to develop the hydrogen mobility sector and span the entire supply chain, including Ark Energy (a subsidiary of Korea Zinc), AXA, Bank of America, Hiringa Energy, Modern Group, NEOM, Raven SR, ReCarbon and Total.”

By bringing together leading financiers, insurers and energy companies which will mobilise fleet operators and industry to forge partnerships that create viable ecosystems and lifecycle solutions, the Alliance uniquely aligns the supply and demand side of the sector.

With this alignment, the Alliance is designed to overcome some of the biggest hurdles faced by the hydrogen industry to date, making zero-emission fleet operations a reality in the very near term.

“Bringing together a supply chain of product and service offerings is critical to the realisation of any new sector, including hydrogen mobility,” Johnson said.

“Established as a non-profit membership-based entity, the Alliance will specifically identify and target opportunities across priority regions worldwide based on customer demand. It will consider pathways to build an increasingly widespread distribution infrastructure, investigate business models that result in replicable project deployment and enable greater volumes of fuel cell electric vehicles on the road supported by complete lifecycle solutions.

“As a uniquely demand-led initiative, the Alliance will capitalise on its direct access to fleet operators worldwide through Hyzon to create hydrogen ecosystems in parallel with vehicle deployments. By aligning the supply and demand side of the sector we aim to overcome the biggest hurdle faced by the hydrogen industry – the chicken and egg dilemma.”

Challenges

Johnson said other hurdles lie in the supply chains and of course, cost.

“Hydrogen’s ability to decarbonise sectors that are otherwise impossible or difficult to abate, such as commercial mobility, means it is being increasingly recognised as a solution to meeting corporate and government sustainability objectives,” she told H2 View.

“However, hydrogen supply chains are currently fragmented or non-existent in some parts of the world, particularly for green hydrogen supply. They are also complex in that they involve a range of stakeholders from production, distribution and use with a variety of different generation and storage approaches, typically based on the characteristics of the region and requirements of the end user. This means that every supply chain is unique and may not be easily replicated.

© Hyzon Motors

“Further, the total costs of ownership (TCO) exceed that of fossil fuel competitors in many instances today. While TCO is not the only consideration for vehicle purchasers, consumers’ willingness to pay is sensitive in the commercial vehicle segment. Achieving competitiveness in a timely fashion will therefore be essential to ensure hydrogen can play a significant role in the global commercial vehicle sector.

“These challenges are not insurmountable and rapid progress is being made to solve them. By bringing together best in class industry players from across the entire value chain and supporting sectors and providing the platform within which industry can collaborate to accelerate project development globally we are creating partnerships and business models that we believe will overcome the obstacles faced by hydrogen today.”

The ‘hydrogen decade’

Hyzon Motors believes the 2020s will be the ‘hydrogen decade’, with the next 10 years seeing hydrogen rise to prominence.

“With costs declining, projects beginning to scale and a global market starting to emerge, evidence shows hydrogen is truly on the pathway towards commercialisation and mass adoption worldwide,” Johnson said.

“One of the earliest applications to hit parity with alternatives is forecast to be heavy-duty trucking. The Hydrogen Council finds that when it comes to range, payload and power, hydrogen-powered mobility solutions are increasingly stacking up, particularly for long-haul trucking.

“At Hyzon, we know that hydrogen for heavy-duty applications makes sense and increasingly wider industry recognises this too. From a performance, unit economics and environmental perspective, fleet operators cannot go past hydrogen fuel cells.

“As the industry continues to gain momentum, we believe our customers will benefit from an increasingly attractive total cost of ownership proposition and this will result in a rapid scale up for the sector over the coming years.”

Shifting up a gear

Of course, hydrogen as a technology is not new to Johnson. Her hydrogen journey started in 2015 whilst working for Toyota when the car giant introduced the first hydrogen-powered Mirai to Australia from Japan.

There is nothing more effective than experiencing the technology first hand – and that’s exactly what we are doing at Hyzon; putting real vehicles in the hands of fleet owners

“While intrigued by the technology at that time, I never would have guessed where my interest in hydrogen would take me over the following years. From starting Australia’s trade association for hydrogen, the Australian Hydrogen Council, to advising some of the country’s leading companies on their own hydrogen transition and now working for Hyzon Motors at the coalface of fuel cell heavy-duty mobility, it’s been an amazing ride,” Johnson enthused.

“Over this time, the sector has gone from strength to strength at rapid pace. No longer are we in education and awareness raising mode as we were five years ago when I spent most of my time conducting hydrogen 101 with stakeholders. Instead, the sector has shifted up a gear where we now talk real projects, real technology and sizeable investments. This evolution is highly satisfying to see and it’s this accelerated progress that makes the sector even more fulfilling to be a part of.”

So how do we continue to build that awareness and acceptance of hydrogen?

“There is nothing more effective than experiencing the technology first-hand – and that’s exactly what we are doing at Hyzon; putting real vehicles in the hands of fleet owners,” Johnson said.

“Hyzon is on track to deliver to customers on four continents in 2021 which means an ever-growing number of organisations will get to see, touch and feel hydrogen commercial mobility for the first time. This not only benefits the hydrogen transport vertical, but every other part of the value chain as we demystify and build confidence in hydrogen as an energy vector.”

Forward-Looking Statements

This article includes “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act, and Section 21E of the Securities Exchange Act. All statements, other than statements of present or historical fact included in this article, including those regarding Decarbonization Plus Acquisition Corporation’s (DCRB) proposed acquisition of the Company and DCRB’s ability to consummate the transaction, are forward-looking statements. When used in this article, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, DCRB and the Company disclaim any duty to update any forward looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this article.

DCRB and the Company caution you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of either DCRB or the Company, including risks and uncertainties described in the “Risk Factors” section of Exhibit 99.3 of DCRB’s Current Report on Form 8-K filed with the SEC on February 9, 2021, the “Risk Factors” section of DCRB’s preliminary proxy statement on Schedule 14A filed with the SEC on March 17, 2021, as amended on May 14, 2021, and other documents filed by DCRB from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements, such as risks related to the ability to convert non-binding memoranda of understanding into binding orders or sales (including because of the current or prospective financial resources of the counterparties to Hyzon’s non-binding memoranda of understanding and letters of intent), or the ability to identify additional potential customers and convert them to paying customers. Hyzon gives no assurance that Hyzon will achieve its expectations.

Additional information about Hyzon’s proposed business transaction and where to find it

In connection with the proposed business combination, Decarbonization Plus Acquisition Corporation (“DCRB”) initially filed a proxy statement with the SEC on March 17, 2021, as amended on May 14, 2021, and certain other related documents, to be used at the meeting of stockholders of DCRB to approve the proposed business combination. INVESTORS AND SECURITY HOLDERS OF DCRB ARE URGED TO READ THE PROXY STATEMENT, ANY AMENDMENTS THERETO AND OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN AND WILL CONTAIN IMPORTANT INFORMATION ABOUT HYZON, DCRB AND THE BUSINESS COMBINATION.  The definitive proxy statement will be mailed to stockholders of DCRB as of a record date to be established for voting on the proposed business combination. Investors and security holders will also be able to obtain copies of the proxy statement and other documents containing important information about each of the companies once such documents are filed with the SEC, without charge, at the SEC’s web site at www.sec.gov,or by directing a request to DCRB.