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Hyzon Motors, a Bolingbrook-based startup, could put up a “for sale” sign, and layoffs may start before then.
Hyzon, a manufacturer of class 8 trucks and hydrogen fuel cells systems, has hired investment bankers from PJT Partners in order to raise capital on the capital markets. The company will also explore the possibility of selling a part or the entire company following a review of its operations.
Hyzon had expected to make significant progress in the second half 2024, but instead has been forced to withdraw from markets outside of North America.
PJT will likely sell its Europe and Australia/New Zealand business first as part of a realignment in strategic priorities, according to Hyzon.
Efficiency, durability, zero emissions: Our CEO Parker Meeks says it best. Hyzon is determined that #hydrogen will push the limits of what is possible, and move the world forward – one industry at atime. Follow us as we move the world with power. pic.twitter.com/wBA2f1ZHOZ — Hyzon (@hyzon) March 12, 2024
Hyzon said that cost reduction is also on the agenda, with layoffs and “other strategic transactions or measures” being included as possible options to reduce costs and preserve cash flow.
Hyzon reported a $184-million net loss in 2023 compared to a loss of $32.19-million in 2022, the company said on March 22.
Hyzon reported a loss of $34.23 millions in the first quarter 2024, compared to a loss of $30.25 in the same period last year, May 13th.
As of March 31st, the company had $52.4 in cash and cash-equivalents on hand. This compares to $112.3 at the end 2023.
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The company reported an operating loss of $30,7 million in Q1, compared to a loss of $41 million in the previous period.
Hyzon said that the redesign and divestments will allow the company to focus on its financial resources and investment in launching Class 8 and refuse truck powered by its 200 kilowatt hydrogen-fuel cell systems. The first large fleet trials are scheduled to begin later this summer.
In January , CEO Parker Meeks informed Transport Topics that the production of the Class-8 truck and fuel-cell systems would begin in the second half.
Hyzon stated that it was on track to produce fuel cell systems by the second half 2024 when it released its first-quarter earnings report in May. The company produced five 200-kW C sample fuel cell systems during Q1 and five additional units in April.
Hyzon launched in March a heavy duty cabover truck powered by a fuel cell system of 200 kW for the Australian, New Zealand, and European markets, with the promise that it would be deployed later this year. These plans are currently in flux.
Hyzon had previously offered customers a 110-kW truck for trial. In December, Hyzon delivered four trucks to Performance Food Group’s Vistar facility in Fontana (California), its largest U.S. client.
The Richmond, Va. based food distributor PFG has more than 150 stores and is ranked No. The Transport Topics Top 100 List of the largest private carriers across North America ranks PFG at No. 5.
PFG wanted to buy 15 more of the larger models after a successful trial with the 110-kW truck and another one with the second generation 200-kW trucks.
Hyzon’s 110-kW hydrogen-fuel cell electric vehicles are the first generation. They have a range up to 350 miles, and a refueling of only 15 minutes.
Hyzon’s decision to withdraw from the core North American markets due to cash problems is similar to that of Nikola Corp., a fellow hydrogen fuel-cell truck manufacturer.
In May 2023 the Phoenix-based Nikola will wind down its European assets, and refocus its strategy on producing hydrogen fuel cell and battery-electric trucks.
Nikola aimed to cut costs through 270 layoffs of which 120 were in the U.S.