PowerTap Hydrogen Fueling Corp. and Coleman Industrial Gases, LLC Sign a Strategic Partnership-based “Letter of Intent” to Negotiate and Execute a CO2 and Hydrogen Purchase Agreement
VANCOUVER, British Columbia and ALISO VIEJO, Calif., Sept. 19, 2023 (GLOBE NEWSWIRE) — PowerTap Hydrogen Capital Corp. (NEO: MOVE) (OTC: MOTNF) (“PowerTap” or the “Company” or “MOVE”) — PowerTap Hydrogen Fueling Corp. (“PowerTap US”), a subsidiary of PowerTap, and Coleman Industrial Gases, LLC (“Coleman”) are pleased to announce the signing of a non-binding Letter of Intent (the “LOI”) that paves the way for an innovative and combined CO2/Hydrogen (“Product”) Purchase Agreement. Pursuant to the LOI, the pricing and terms of the future sale of Product by PowerTap US to Coleman remain subject to the negotiation of a definitive offtake agreement, ultimately binding both parties into a strategic long-term partnership. The parties will use their best commercial efforts to negotiate a definitive agreement (“Definitive Agreement”) by December 31, 2023. The entering into of Definitive Agreement and PowerTap US’ ability to satisfy its obligations under the pending Definitive Agreement is subject to PowerTap’s ability to obtain sufficient funding to manufacture and commercialize its on-site hydrogen fueling units, and successfully obtaining required permits from applicable authorities.
Under this exciting partnership, PowerTap US will serve as the seller, providing both food grade CO2 and fueling grade hydrogen. To support the refueling of fuel cell electric trucks or (FCET), PowerTap US ‘ unique on-site hydrogen production and fueling equipment will be deployed at several sites, which also captures and stores CO2 for offtake to either “use” and or “sequestration” projects. In the exchange, Coleman’s future fleet of FCETs will gain a strong fueling partner in PowerTap US who contributes cost effective fueling while provisioning the CO2 commodity needed to serve Coleman’s increasing customer demands.
One of the remarkable aspects of this pending Definitive Agreement is the bilateral exchange including affordable hydrogen to fuel Coleman-operated class 8 FCETs, further reducing emissions and promoting sustainability. PowerTap US will enable Coleman’s gas supply chain with additional capacity leading to growth within their nationwide customer base. The supply relationship also negates the need to otherwise produce CO2 strictly for the purpose of fulfilling Coleman’s customer demands, making this a true “win-win-win” for PowerTap US, Coleman and the environment.
Furthermore, PowerTap US and Coleman have committed to collaborating on an innovative and cost-effective dual-purpose storage and delivery system, in which PowerTap US hydrogen production hub sites would use Coleman rail-based tankers as the primary CO2 storage tanks.
The LOI also contemplates an additional opportunity in which dry ice manufacturing from CMC Dry Ice Manufacturing, LLC (“CMC”), a Coleman affiliate, can be integrated as a co-located distribution center at PowerTap US refueling stations, eliminating the need for CO2 transport. In these cases, CMC will offer the dry ice produced to PowerTap FCET OEMs and fleet operators for cold transport of products such as vaccines and produce, further positioning PowerTap US as a cost competitive resource to fleets.
Mike Coleman, Chief Executive Officer of Coleman Industrial Gases, LLC, stated, “We are excited to embark on this journey with PowerTap to leverage sustainable energy solutions and enhance our operations. This new relationship with PowerTap aligns with our commitment to environmental responsibility and innovation.”
Salim Rahemtulla, Chief Executive Officer of PowerTap expressed enthusiasm, saying, “Our pending partnership with Coleman is a testament to the power of collaboration in advancing clean energy solutions. Together, we are poised to make a positive impact on the environment while meeting the evolving needs of our customers.”
This LOI represents a significant step forward in the path towards a cleaner and more sustainable future, showcasing the commitment of PowerTap and Coleman in pioneering environmental and operational excellence.
ABOUT POWERTAP HYDROGEN CAPITAL CORP.
PowerTap Hydrogen Capital Corp., through its wholly owned subsidiary, PowerTap Hydrogen Fueling Corp. (“PowerTap”), is focused on installing hydrogen production and dispensing fueling infrastructure in the United States. PowerTap is in the process of commercializing its third-generation blue hydrogen product that will focus on the refueling needs of the automotive and long-haul trucking markets that lack hydrogen fueling infrastructure.
PowerTap Hydrogen common shares are listed on CBOE Canada. Please visit the Company’s profile on the CBOE Canada website at https://www.cboe.ca/en/live/security-activity/MOVE#!/market-depth
For media inquiries or further information, please contact:
PowerTap: Byron Berry, 647-302-8276
Coleman: Mike Coleman, 980-565-5224
NEITHER THE NEO EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Notice Regarding Forward-Looking Information:
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of PowerTap. Some assumptions include, without limitation, the development of hydrogen powered vehicles by vehicle makers, the adoption of hydrogen powered vehicles by the market, legislation and regulations favoring the use of hydrogen as an alternative energy source, the qualification for carbon credits (including the availability of credits, benefits, emission reductions, offsets and allowances, howsoever entitled, attributable to the production, combustion or other use of biogas), the availability of sufficient RNG feedstock the Company’s ability to build out its planned hydrogen fueling station network, and the Company’s ability to raise sufficient funds to fund its business plan. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur or be achieved.
Although PowerTap believes that the expectations and assumptions on which the forward-looking information are based are reasonable, undue reliance should not be placed on the forward-looking information because PowerTap can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.
This press release contains forward-looking statements pertaining to, among other things, the timing and ability of the Company to complete the development and manufacture of its on-site hydrogen fueling units; finalizing supply chains; obtaining sufficient funding to complete and manufacture its on-side hydrogen fueling units; obtaining all necessary zoning and construction permits for locations hosting the fueling units; and Coleman’s ability to satisfy its obligations under the pending Definitive Agreement. Forward- looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking information contained in this press release.
Although the Company believes that the material factors, expectations, and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.