© Hyzon Motors
© Hyzon Motors

Hyzon faces $17m exit costs from EU and Australian hydrogen truck markets

Hydrogen truck manufacturer Hyzon will incur charges of around $17m by halting its Dutch and Australian operations as it refocuses on its home market in North America, the company has revealed.

In an announcement today (July 8), Hyzon said government support for fuel cell-powered transport in Europe and Australia had “waned,” by comparison to North America.

The company said that waning support included, “the disbandment in many European countries of hydrogen subsidies.”

Originally announced last month, Hyzon revealed the decision to back out of overseas markets as it undertook cost-reduction efforts and liquidity management.

Read more: Hyzon Motors pulls out of overseas market amid cost reduction

Hyzon CEO Parker Meeks, said it was “complex and difficult” decision.

“Given the challenges of bringing new technology to market in an emerging industry, we believe we need to focus our efforts on the North American market and refuse industry as well as overseeing our large fleet trial programmes,” he added.

As part of its exit activities, Hyzon expects to incur charges of around $17m, which is expects to account for in Q2 and Q3 this year.

The company launched its Australian heavy-duty commercial truck, powered by a 200kW single-stack fuel cell system in March this year.

Hyzon has said it intends to maintain the potential of returning to European and Australian markets as a fuel cell system supplier to truck OEMs.

The year that rocked and reshaped Hyzon Motors

© Hyzon Motors

The tale of Hyzon Motors is one of a quick rise to success, followed by struggles within its operations, which in the words of CEO Parker Meeks, drove it to transform itself.

Springing into life at the start of the Covid-19 pandemic in March 2020, the Rochester, New York-headquartered hydrogen fuel cell and truck firm quickly grabbed headlines, basing its hydrogen-powered drives on technology developed by Singapore’s Horizon Fuel Cell Group.

In its first year, the company took the market by storm, carrying out an aggressive and ambitious commercialisation plan, securing partnerships with the likes of Raven SR, Hiringa Energy, TC Energy and Woodside, as well as launching Australian and European businesses.

For over two years, all seemed bright at Hyzon. New contract announcements, big partnerships and vehicle deliveries were commonplace. But in August 2022, a series of events came to light that would force Hyzon’s hand to fundamentally change its board, senior management team and strategic focus….

Click here to keep reading.

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