Hydra Energy unveils first hydrogen-converted, heavy-duty vehicle
It’s a milestone for Hydra but also for clean trucking overall and for Canada’s push for net-zero emissions by 2050.
Today in Prince George, Hydra Energy announced the delivery of the first hydrogen-converted, heavy-duty truck to a paying fleet customer — what they’re calling an industry milestone.
Prince George’s Lodgewood Enterprises has received the initial truck marking the first of 12 semi-trucks to be converted with Hydra’s hydrogen-diesel conversion kit. According to the company, the clean trucks will run on low-carbon hydrogen at a fixed discount below the cost of diesel which Hydra has sourced from Canadian industrial chemical provider, Chemtrade.
This comes after Hydra completed three years of on-road testing of its hydrogen-diesel, co-combustion injection system, which they say provides a carbon emissions reduction of up to 40% per converted truck.
Why it matters: It’s a milestone for Hydra but also for clean trucking overall and for Canada’s push for net-zero emissions by 2050. “Although heavy-duty trucking accounts for only 1.37% of vehicles on the road, it accounts for 30% of road-related emissions,” noted Hydra Energy CEO, Jessica Verhagen.
“Hydrogen-fueled transportation is often talked about in the future, especially when it comes to truck fleets that can take years to turn over,” she added. “We’ve proven with our innovative HaaS business model and practical retrofit approach for existing trucks that scalable, affordable hydrogen-powered trucking is a reality today.”
Happy customer: “As a fleet owner, it was an easy decision to adopt Hydra’s low risk, co-combustion technology and to begin reducing emissions immediately without negatively impacting truck performance, warranty, and driver experience,” said Lodgewood President, Arlene Gagne, in a statement. “Our converted fleet stands to reduce CO2 emissions by over 800 tonnes per year helping us also attract a newer, younger generation of drivers concerned with the environment. And we’ve lowered our fuel costs in the process.”
Details: Hydra is pioneering what it calls a Hydrogen-as-a-Service (HaaS) model. The company has taken inspiration from the solar market in California, where utilities install solar panels at no cost to the homeowner, recouping the capital cost over time through margin on monthly electricity use. For fleet operators, Hydra will pay $50,000 per engine to install their conversion technology at no cost to the owner. Hydra recoups that cost through a recurring revenue model that features five-year hydrogen fuel contracts on a fixed-cost basis that is five percent lower than the cost of diesel.
Accounting for growth: Hydra’s technology has been in development since 2012. They’ve received public financial support from the Government of Canada’s Innovation Research Assistance Program (IRAP), the Low Carbon Economy Fund (LCEF), Sustainable Development Technology Canada (SDTC), Innovate BC, the Northern Development Initiative Trust (NDIT), NSERC and MITACS. In addition, Hydra raised $15 million earlier this year to fund company expansion, bringing the company’s total raised to date to $22 million.