PowerTap Hydrogen Capital Corp. and Coleman Industrial Gases, LLC have signed a non-binding Letter of Intent (LOI) to establish a strategic partnership for the purchase of a combined CO2/Hydrogen product. The LOI sets the stage for the negotiation of a definitive agreement between the two companies.
PowerTap US, a subsidiary of PowerTap, will serve as the seller of food-grade CO2 and fueling-grade hydrogen. The company will deploy its unique on-site hydrogen production and fueling equipment at several sites to support the refueling of fuel cell electric trucks. The equipment also captures and stores CO2 for use in other projects.
Coleman, on the other hand, will benefit from having a reliable fueling partner in PowerTap US for its fleet of fuel cell electric trucks. Not only will Coleman gain cost-effective fueling solutions, but it will also have access to the CO2 commodity needed to fulfill customer demands.
The partnership between PowerTap US and Coleman aims to reduce emissions and promote sustainability. By providing affordable hydrogen fuel for Coleman’s FCETs, the companies contribute to a greener transportation industry. The agreement also eliminates the need to produce additional CO2 solely for Coleman’s customer demands.
Furthermore, the LOI includes plans for a collaborative storage and delivery system, where PowerTap US would use Coleman rail-based tankers as the primary CO2 storage tanks. This system aims to streamline operations and reduce the need for CO2 transport.
Additionally, the agreement contemplates integrating dry ice manufacturing from CMC Dry Ice Manufacturing, LLC at PowerTap US refueling stations. This eliminates the need for separate CO2 transport and offers a cost-effective resource for fleets requiring dry ice for cold transport.
Both companies are enthusiastic about the partnership and the potential it holds for advancing sustainable fueling solutions and reducing emissions in the transportation sector.
Definitions:
– CO2: Carbon dioxide, a greenhouse gas emitted by various human activities, including the burning of fossil fuels.
– Hydrogen: A chemical element that can be used as a clean and efficient alternative fuel.
– LOI: Letter of Intent, a preliminary agreement between two parties indicating their intention to enter into a formal contract.
Sources:
– GlobeNewswire.