Sustainable Business

Hydra Energy raises $12 mln for hydrogen fueling expansion

2 minute read

May 27 (Reuters) - Fuelling startup Hydra Energy said on Thursday it had raised 15 million Canadian dollars ($12.4 million) to fund a hydrogen capture project and for converting diesel trucks to run on hydrogen.

The latest financing comes from Emeryville, California-based Just Business, which focuses on sustainable investments and brings Hydra's total funding to 22 million Canadian dollars.

Hydrogen, which produces water when it burns, is seen as a potential alternative for long-haul trucking, the aviation industry, and maritime shipping, all major users of fossil fuels. Hydrogen can be made from fossil fuels or from water using electrolysis, although it is an expensive process.

Hydra's test hydrogen capture project is in partnership with Chemtrade (CHE_u.TO) at a chemical plant in British Columbia. Rather than venting waste hydrogen into the atmosphere, Hydra captures the gas for consumption by its fleet customers.

The Delta, British Columbia-based company's converted trucks have undergone on-road testing on commercial routes covering over 200,000 kilometers (124,275 miles). Later this year, Hydra will start offering its hydrogen conversion kits to truck fleets and provide hydrogen at a fixed discount rate 5% lower than their existing diesel costs.

($1 = 1.2088 Canadian dollars)

Reporting By Nick Carey Editing by Bill Berkrot

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