VANCOUVER, British Columbia and IRVINE, Calif., Aug. 17, 2022 (GLOBE NEWSWIRE) — PowerTap Hydrogen Capital Corp. (NEO: MOVE) (FWB: 2K6) (OTC: MOTNF) (“PowerTap” or the “Company” or “MOVE”) is pleased to provide an update on the US Inflationary Reduction Act (IRA) for 2022 that it recently announced. signed by President Biden, which allows PowerTap to expand outside of California as incentives are now also at the federal level.
The Inflation Reduction Act (IRA) of 2022 would generate $369 billion in funding for energy and climate change programs (link here) and avoid 6.3 billion tons of greenhouse gas emissions by 2030 and Energy Impact of the Inflation Reduction Act of 2022), achieving a 40 percent reduction in annual emissions compared to 2005 levels (link here). The IRA provides government support that PowerTap and the hydrogen industry have been waiting to prioritize hydrogen as a solution to stimulate private sector investment in clean hydrogen. According to a recently published analysis from the international law firm Shearman and Sterling (linked here), this critical legislation makes the United States one of the most competitive places in the world to develop green hydrogen projects along the value chain. ah. It is necessary to encourage other countries to develop their own subsidies to ensure domestic production, so the IRA should be seen as important for the development of the hydrogen economy worldwide. This significant investment by the US government is a major step in reducing US greenhouse gas emissions leading to the conclusion that hydrogen will play a meaningful part in that effort.
According to a detailed analysis provided by Recharge, the world’s leading source of business intelligence for the renewable energy industry (link here), the $433B Inflation Relief Act of 2022 creates a tax credit that will pay for PowerTap and hydrogen producers. of clean about $3 a kilo (adjusted for inflation). PowerTap intends to focus its efforts on maximizing existing tax credits in accordance with the criteria identified herein. The size of the tax credits available to clean hydrogen producers in the United States depends on the greenhouse gas (GHG) emissions over the life cycle of each project – and more importantly, how much workers are paid. The basic tax credit rate for “Eligible Clean Hydrogen” is set at $0.60/kg, with a sliding scale depending on the life cycle emissions – measured in carbon dioxide-equivalent (CO2e) – of the hydrogen produced. Hydrogen produced with less than 0.45kg of life cycle CO2e emissions per kg of H2 will receive 100% credit, followed by 33.4% for 0.45-1.5 kg CO2e/kgH2, 25% for 1.5-2.5 kg and 20% for 2.5 -4 kg. Lifecycle emissions must be verified by an “unaffiliated third party,” and only projects that begin construction before 2033 will qualify, which will give benefits to PowerTap projects that will begin construction starting in 2023. however, the new wage bill seems to be the most important part of the agreement – multiplying the credit size by a factor of five. Manufacturers will be eligible for this enhancement if they ensure that “every laborer and mechanic employed by contractors and subcontractors in the construction of this facility…shall be paid wages at a rate not less than the prevailing rates for construction, alteration, or repair of a similar nature.” the environment in such a facility as recently determined by the Secretary of Labor.” Importantly, life-cycle emissions are calculated from “well-to-gate”—in other words, they may include higher methane emissions from production. blue hydrogen (which is made from natural gas with incomplete carbon capture and storage).
With PowerTap’s emphasis on using a combination of renewable natural gas (RNG) and natural gas to ensure a zero or negative carbon footprint in the PowerTap Gen3 hydrogen production and distribution unit (MHPDU ), the blue hydrogentap is the best solution for the US market given the natural gas and book-and-claim RNG infrastructure as described in its May 2021 press release (link to that press release here). With the passage of the IRA, the future of hydrogen as the green fuel of choice for long-distance heavy vehicles and current electric vehicles is assured. Considering this and the current fact that there are only 100 hydrogen fuel stations in the United States, thousands of hydrogen stations are needed now and will be needed in the future.
In addition, the amount of US federal hydrogen tax credit that PowerTap expects to be eligible for is higher than the State of California’s LCFS (Low Carbon Fuel Standard) hydrogen fueling infrastructure and credit credits that PowerTap and other hydrogen producers will receive (guidance The latest LCFS from the State of California is here).
Raghu Kilambi, CEO of PowerTap noted, “The IRA will allow PowerTap to expand its focus to the rest of the USA (outside of California) because of the necessary and attractive incentives to build hydrogen infrastructure. We are also pleased that this law awards federal incentives including credit credits to green and blue producers in the U.S. Although we believe in green hydrogen (electrolysis) and have several investments in the green hydrogen space, we believe that blue hydrogen is the ideal solution for the US in the next decade due to the high cost of electricity required to produce green hydrogen.. We agree with Wes Edens’ (Co-Founder, CEO and Co-founder Fortress Investment Group, a US$50 million asset manager) recently commented on CNBC that “blue hydrogen has y potential to gain a large share of the US market. than green hydrogen because of the cost benefits and use of natural gas and renewable natural gas.”
ABOUT POWERTAP HYDROGEN CAPITAL CORP. PowerTap Hydrogen Capital Corp., through its wholly owned subsidiary, PowerTap Hydrogen Fueling Corp. (“PowerTap”), focuses on installing hydrogen production and supplying fuel infrastructure in the United States. PowerTap’s patented solution has been developed for over 20 years. PowerTap is now commercializing its third-generation blue hydrogen product that will focus on the fuel needs of the car and truck markets that do not have a hydrogen fueling infrastructure. Currently there are less than 100 publicly available hydrogen stations in the United States with most existing stations purchasing hydrogen from industrial manufacturers and transporting hydrogen from private stations using tanker trucks.
www.PowerTapcapital.comwww.PowerTapfuels.com
PowerTap Hydrogen shares are listed on the NEO Exchange. Please visit the company profile on the NEO Exchange website at https://www.neo.inc/en/live/security-activity/MOVE#!/market-depth
Investor Relations: Tyler Troup, Circadian IR Group MOVE@circadian-group.com
Contact PowerTap: Raghu Kilambi raghu@hydrogenfueling.co+1 (604) 687-2038
NEITHER NEO ALTERNATIVES OR THE LEGAL SERVICES PROVIDERS ASSUME OR ACCEPT RESPONSIBILITY FOR ADEQUATE OR CORRECT DISCLOSURES.
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This press release contains “forward-looking statements” or “forward-looking statements” (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, projections, estimates, expectations and objectives of future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond PowerTap’s control. Some of the ideas include, without limitation, the development of hydrogen-powered vehicles by car manufacturers, the adoption of hydrogen-powered vehicles in the market, legislation and regulations that favor the use of hydrogen as an alternative energy source, qualifying for carbon credits ( including the availability of credits, benefits, emission reductions, reductions and allowances, however, however, however, however, however, however, to however, attributed to the production, combustion or other use of biogas), the availability of sufficient feed RNG the Company’s ability to build its planned network of hydrogen fuel stations, and the Company’s ability to collect sufficient funds to to finance her business plan. Forward-looking statements are statements that are not historical facts and are generally, but not always, characterized by the words “expects”, “plans”, “expects”, “believes”, “intends”, “estimate”, “project”, “potential” and similar expressions, or that events or conditions “will”, “will”, “may”, “have” or “must” occur or be achieved. This press release contains preliminary statements regarding, among other things, the timing and outcome of the municipal/district hearing to determine the suitability of the Company’s site plans. Forward-looking information is based on expectations from the present, estimates and projections that involve a number of risks, which may cause the actual results to differ and, at times, to differ from those of the company’s expectations and described in the forward-looking information. with this press release.
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