Hyzon Motors, a Rochester-based global supplier of zero-emissions commercial vehicles fueled by hydrogen fuel cells, on Monday crossed the starting line as a public company.
Its shares began trading on the Nasdaq Global Select market under the ticker symbol HYZN, closing at $8.26 a share, down 20 percent from its opening price of $9.70. It opened Tuesday morning at $8.46.
The market debut for Hyzon’s Class A common stock followed Friday’s completion of the merger of Decarbonization Plus Acquisition Corp., a “blank check” public company, and the Rochester-based firm. The business combination was approved by DCRB’s stockholders on Thursday.
With the transaction, Hyzon received more than $550 million in proceeds. The company plans to use the money to fund operations and accelerate its growth.
“Our public listing will foster greater awareness that the future of commercial transportation—hydro fuel cell powered vehicles—is today’s reality,” Hyzon CEO Craig Knight said. “It’s the beginning of a new chapter in the history of Hyzon, as we accelerate the transition to hydrogen commercial transport worldwide, and advance our commitment to reducing carbon emissions in a sector that is one of the largest contributors to climate change.”
DCRB closed its IPO in October. Less than two weeks later, it began discussions with Hyzon. The merger agreement—with an expected $2.1 billion enterprise value—was announced in early February.
In a conference call after the merger announcement, Knight described Hyzon Motors as “the realization of the vision that our Chairman George Gu and I had almost 20 years ago. We’ve worked together pursuing the commercialization of hydrogen fuel cell technologies for many years.”
Hyzon was launched when Singapore-based Horizon Fuel Cell Technologies spun off its Heavy Vehicle Business Unit in 2020. The company established its headquarters last year in Honeoye Falls at the former General Motors facility, which closed in 2012.
In February, it announced plans for a nearly $8 million expansion assisted by Empire State Development, Monroe County and Greater Rochester Enterprise. It also has operations in Europe, Singapore, Australia and China.
Hyzon has proprietary hydrogen fuel cell technologies that target commercial heavy-duty vehicle applications. Knight said the fuel cell electric vehicle market is “positioned to grow rapidly,” with research predicting it will expand at a 34 percent compound annual rate through 2030.
DCRB director Robert Tichio described Hyzon’s revenue model as “a really important distinguishing factor.”
“Hyzon is not dependent on the buildout of a national or continental network of hydrogen infrastructure,” he said. “Eighty percent of its near-term sales pipeline is in Asia, Australia and Europe, where hydrogen is far more advanced than in the U.S. And because it is selling to customers that have already sourced and captured their hydrogen fuel supply, Hyzon’s business is selling trucks.
“Hyzon’s customers are targeted,” he added, “because they’re already organized around fleets that have back-to-base business models where truck routes are knowable, distances are certain and pattern usage is easy to forecast.”
The company’s potential is “huge,” Chief Financial Officer Mark Gordon said.
“Hyzon’s total addressable market (is) $200 billion in the global diesel engine market alone,” he said, “along with potential in rail, aviation and marine applications. We believe as de-carbonization of the global economy continues, Hyzon’s technology will rapidly gain traction in other sectors.”
Hyzon expects its revenues to grow from an estimated $37 million in 2021 to nearly $3.3 billion in 2025, with EBITDA—a measure of profitability that excludes interest, taxes, depreciation, and amortization—turning positive in 2023.
Gordon said the 2021 forecast is “100 percent covered by contracts and (memorandums of understanding), while our 2022 forecast is almost 50 percent contract and MOU covered.” Thirty percent of 2025 revenue is accounted for under current MOUs.
In addition to Gu, Knight and Gordon, Hyzon’s leadership team includes Adam Kroll, chief administrative officer; Parker Meeks, chief strategy officer; and John Zavoli, general counsel and chief legal officer.
Paul Ericson is Rochester Beacon executive editor.