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HOUSTON - ElectriGen LLC, a power-as-a-service provider, has partnered with Hyliion Holdings Corp. (NYSE American: HYLN), a $429 million market cap company, to install innovative KARNO™ generators, aiming to cut methane emissions in the oil and gas industry. According to InvestingPro analysis, Hyliion maintains a strong balance sheet with more cash than debt, though the company is currently in a rapid cash-burn phase. Hyliion secured a $6 million grant from the U.S. Department of Energy's Methane Emissions Reduction Program, contributing to a project with $8.4 million in combined federal and private funding.
The KARNO generator, a key component of this initiative, is a fuel-agnostic technology capable of converting over 20 types of fuels into electricity. Notably, it can run on raw, unprocessed field gas, which is typically flared into the atmosphere. The technology is anticipated to reduce maintenance costs and emissions, providing a more sustainable and efficient energy solution. With analysts projecting a remarkable 743% revenue growth for Hyliion in 2024, the KARNO technology could be a significant growth driver.
This collaboration is set to showcase the KARNO generator's utilization of well-head gas to produce sustainable, near-zero emissions electricity. The generator has undergone successful tests with untreated natural gas from the Permian Basin, indicating its potential to transform excess flared gas into a profitable energy source while mitigating methane emissions.
Chris Combs, Co-founder and COO of ElectriGen, highlighted the project's alignment with their goal to deliver near-zero emissions power and the ability to use previously unusable natural gas without additional fuel conditioning expenses. He also emphasized the partnership's commitment to enhancing power capacity per deployment.
The U.S. DOE and U.S. Environmental Protection Agency's $850 million Methane Emissions Reduction Program funds this grant, aiming to support advancements in monitoring, measurement, and mitigation of methane emissions. The grant awarded to Hyliion and ElectriGen will foster sustainable energy generation, economic development, and job creation in local communities.
Final negotiations and a definitive agreement with the U.S. DOE are pending for the funding to be fully awarded to the project.
ElectriGen is based in Houston, Texas, and focuses on providing distributed power solutions that are clean, flexible, and affordable. The company's solutions cater to commercial, industrial, and oil & gas markets, offering a range of power capabilities, from 200kW to multiple gigawatts, particularly for modern data center developments.
This project represents a significant step in leveraging technology to address environmental concerns in the energy sector, based on a press release statement.
In other recent news, Dubai-based Swvl Holdings Corp, with a current valuation of $457.79 million, has appointed Youssef Salem to its Board of Directors. This development comes ahead of the company's upcoming Annual Meeting of Shareholders. Salem, a former CFO of the company, has a strong background in investment banking and academia. He will serve as a Class II director until the second succeeding annual meeting after the January 2025 meeting.
In other recent developments, Hylian Holdings has reported significant progress in its third quarter 2024 earnings call. Despite a net loss of $11.2 million, the company's financial position has improved from the previous year, with decreased operating expenses and a robust cash and investments balance of $238 million. The company is set to commence early adopter deliveries of its 200-kilowatt Carnot generator, bolstered by a $16 million contract with the U.S. Office of Naval Research. Hylian is transitioning from beta development to testing and validation of its Carnot generator, with revenue recognition for R&D services to begin in Q4 2024.
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