PowerTap Provides Update on Its Blue Hydrogen Technology and How It Fits within the Draft US Infrastructure Bill Definition of Clean Hydrogen

Vancouver, CANADA


VANCOUVER, British Columbia and IRVINE, Calif., Aug. 16, 2021 (GLOBE NEWSWIRE) -- PowerTap Hydrogen Capital Corp (NEO: MOVE) (FWB: 2K6) (OTC: MOTNF) (“PowerTap” or the “Company” or “MOVE”) the Company is pleased to provide an update on its technology for producing low carbon intensity blue hydrogen and how it is consistent with the definition of clean hydrogen in the draft US Infrastructure Bill.

As previously reported in the Company’s press release of February 11, 2021, the Company, through its wholly-owned subsidiary, PowerTap Hydrogen Fueling Corp., intends to use renewable natural gas (RNG) (i.e., biogas from dairy farms and biomethane from landfills) blended with fossil fuel natural gas as a feedstock in its modular on-site hydrogen production and dispensing system to produce blue hydrogen. PowerTap Hydrogen Fueling's team anticipates that by applying its technology to produce hydrogen from existing pathways using California Air Resources Board (CARB) methodology, a carbon intensity (CI) of zero (0) grams (g) CO2 per megajoule (MJ) or lower could be achieved. The importance of a 0 or lower CI is that PowerTap aims to produce and dispense hydrogen with a zero or lower carbon footprint as the world moves to lower carbon footprints toward slowing or arresting the impacts of climate change.

The table below compares the carbon intensity of PowerTap’s hydrogen production with the hydrogen production and dispensing models involving production of hydrogen offsite and transported to the site of consumption (Offsite Production) and the production of hydrogen using the current fossil fuel-based electric grid (Electrolysis). Comparing PowerTap's zero CI onsite hydrogen production model to the 117.97 g CO2e/MJ CI for gray or blue hydrogen produced offsite or 75.93 g CO2e/MJ CI for green hydrogen produced by electrolysis with electricity from the United States’ fossil-fuel based electric grid, PowerTap’s blue hydrogen is greener than the gray or blue hydrogen produced offsite and green hydrogen produced by electrolysis.

Hydrogen Production Method/Business ModelCarbon Intensity (g CO2e/MJ)
Compress, Store, Dispense*117.671
On-Site Electrolysis**75.932
PowerTap’s On-Site Production0

* H2 Centrally Produced/Trucked to Stations (Current, Predominant Model)
** Electricity from Current Fossil Fuel-Based Electric Grid

To achieve CI of zero (0) g CO2 per MJ, PowerTap Hydrogen Fueling has made the following assumptions: (i) its dispensed hydrogen will utilize at least 40% or greater of renewable content (i.e. RNG), as required under Paragraph 95486.2 (a)(4)(F)2 on page 83 of the Lower Carbon Fuel Standard Regulation administered by the California Air Resources Board3; (ii) there is sufficient availability of RNG feedstock noting the significant number of CARB-approved pathways having carbon intensities of -5 g CO2e/MJ to -631 g CO2e/MJ (as reflected in a spreadsheet on the CARB website at https://ww2.arb.ca.gov/sites/default/files/classic/fuels/lcfs/fuelpathways/current-pathways_all.xlsx); and (iii) the availability of sufficient credits, benefits, emission reductions, offsets and allowances attributable to the production, combustion or other use of biogas ("Environmental Attributes"). In consultation with carbon credits specialist, Carbonomics, and RNG marketer, Element Markets, PowerTap Hydrogen Fueling anticipates that sufficient volumes of RNG with very low negative CIs will be available when needed and that any blend of fossil fuel natural gas and RNG with a minimum of 41% RNG plus the application of available Environmental Attributes will result in a negative CI.

As important, the hydrogen produced by the PowerTap’s Gen3 unit, fits within the new definition of "clean hydrogen" which, as outlined in the draft Energy Infrastructure Act from Sen. Joe Manchin (D-WV)4, will be defined based on carbon intensity of hydrogen production and would apply to hydrogen produced from renewables, fossil fuels with carbon capture, biomass, and nuclear energy.

“With the draft US Infrastructure Bill classifying the blue hydrogen produced with PowerTap’s onsite production and dispensing technology as clean hydrogen, the hydrogen we produce will be a component of the US’s efforts to reach zero carbon by 2050”, said Salim Rahemtulla, President of PowerTap Hydrogen Fueling Corp.

ABOUT POWERTAP HYDROGEN CAPITAL CORP.

PowerTap Hydrogen Capital Corp., through its wholly-owned subsidiary, PowerTap Hydrogen Fueling Corp. (“PowerTap”), is focused on installing hydrogen production and dispensing fueling infrastructure in the United States. PowerTap’s patented solution has been developed over 20 years. PowerTap is now commercializing its third-generation blue hydrogen product that will focus on the refueling needs of the automotive and long-haul trucking markets that lack hydrogen fueling infrastructure. There are currently under 100 operational publicly available hydrogen stations in the United States with most of the existing stations purchasing industrial hydrogen from industrial manufacturers and shipping hydrogen to individual stations via tanker trucks.

PowerTap Hydrogen common shares are listed on the NEO Exchange. Please visit the company's profile on the NEO Exchange website at https://www.neo.inc/en/live/security-activity/MOVE#!/market- depth.

PR Contact:
Ajay Bruno
Account Director | AMW PR
c: 732.546.4287 o: 212.542.3146
ajay@amwpr.com 

Investor Contact:
Tyler Troup, Circadian Group IR
MOVE@circadian-group.com

PowerTap Contact:
Raghu Kilambi
raghu@hydrogenfueling.co
+1 (604) 687-2038

NEITHER THE NEO EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Notice Regarding Forward Looking Information:
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of PowerTap. Some assumptions include, without limitation, the development of hydrogen powered vehicles by vehicle makers, the adoption of hydrogen powered vehicles by the market, legislation and regulations favoring the use of hydrogen as an alternative energy source, the qualification for carbon credits (including the availability of credits, benefits, emission reductions, offsets and allowances, howsoever entitled, attributable to the production, combustion or other use of biogas), the availability of sufficient RNG feedstock the Company’s ability to build out its planned hydrogen fueling station network, and the Company’s ability to raise sufficient funds to fund its business plan. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved. This press release contains forward-looking statements pertaining to, among other things, the timing and ability of the Company to complete any potential investments or acquisitions, if at all, and the timing thereof. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking information contained in this press release.

Although the Company believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.

The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

1 Table F.3 Summary of CI Results by Life Cycle Stage for Hydrogen Pathways (Fuel Pathway Code HYF), CA-GREET 3.0 Lookup Table Pathways, Technical Support Documentation (https://ww2.arb.ca.gov/sites/default/files/classic/fuels/lcfs/ca-greet/lut-doc.pdf)
2 Table 1-2, 2021 Carbon Intensity Values for California Average Grid Electricity Used as Transportation Fuel in California and Electricity Supplied under the Smart Charging or Smart Electrolysis Provision, Posted March 15, 2021 (https://ww2.arb.ca.gov/sites/default/files/classic/fuels/lcfs/fuelpathways/comments/tier2/2021_elec_update.pdf?_ga=2.207245524.611557608.1628272571-476568668.1615315573)
3 LCFS Regulation - https://ww2.arb.ca.gov/sites/default/files/2020-07/2020_lcfs_fro_oal-approved_unofficial_06302020.pdf
4 https://www.energy.senate.gov/2021/7/energy-committee-advances-manchin-s-bipartisan-energy-infrastructure-act