MOTNF - 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 | Benzinga
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 ...