AUSTIN, Texas - Hyliion Holdings Corp. (NYSE:HYLN), known for developing electricity-generating technologies, announced today that its KARNO linear generator has been recognized as an eligible technology under California's Renewable Portfolio Standard (RPS) program, following the recent approval of Assembly Bill 1921. This recognition allows the KARNO generator to contribute to California's climate objectives by utilizing renewable fuels for energy production.
The RPS program mandates that 60% of California's retail electricity sales must be sourced from renewable energy by 2030, with a goal of achieving 100% carbon neutrality by 2045. The program encourages the adoption of clean technologies to lower greenhouse gas emissions and foster innovation in renewable energy.
Hyliion's KARNO generator is designed to be versatile and fuel-flexible, capable of using over 20 different fuels, including renewable natural gas, hydrogen, and ammonia. This could potentially offer a solution for low to zero-emission energy generation.
Thomas Healy, Founder and CEO of Hyliion, expressed optimism about the role of the KARNO technology in supporting California's green initiatives and contributing to a sustainable energy future. The generator's modular design is expected to improve fuel efficiency, reduce maintenance costs, and offer a lower emissions profile compared to conventional generators.
Hyliion, headquartered in Austin, Texas, is focusing on distributed power generators that can operate on various fuel sources, targeting the commercial and waste management industries initially. The company is also exploring applications in mobile sectors such as vehicles and marine.
This announcement is based on a press release statement from Hyliion Holdings Corp. It should be noted that the company's forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. Hyliion has cautioned that their projections are subject to numerous risks, most of which are difficult to predict and beyond their control.
In other recent news, Hyliion Holdings Corp. has been actively advancing its KARNO generator technology. The company secured a $15 million contract from the Office of Naval Research (ONR) for potential use aboard Navy ships and in stationary power settings, aiming to enhance U.S. Naval operations. Additionally, Hyliion has signed a non-binding Memorandum of Understanding (MOU) with Jardine Engineering Corporation Limited (JEC) to deploy the KARNO technology in power generation projects across Hong Kong, Macau, and other regions.
In another significant development, Hyliion was awarded a Small Business Innovation Research (SBIR) contract from the U.S. Navy to design a modular generator system using the KARNO technology. This system is intended to meet the power requirements of the Navy's Unmanned Surface Vessel program.
Despite a reported net loss of $10.9 million in Q2 2024, Hyliion remains optimistic about its financial future. The company has secured letters of intent for all KARNO generator units planned for 2024 deployment and over half for 2025. It anticipates breakeven gross margins by late 2025 or early 2026 and projects revenue in the low double-digit millions of dollars in 2025. These recent developments reflect Hyliion's commitment to innovation and sustainable energy solutions.
InvestingPro Insights
Hyliion Holdings Corp.'s recent recognition under California's Renewable Portfolio Standard program aligns with several key financial metrics and trends identified by InvestingPro.
According to InvestingPro data, Hyliion's market capitalization stands at $402.71 million, reflecting the company's position as a niche player in the renewable energy sector. This relatively modest valuation could present opportunities for growth as the company's KARNO technology gains traction in the California market and potentially beyond.
InvestingPro Tips highlight that Hyliion holds more cash than debt on its balance sheet, which could be crucial for funding the development and deployment of its KARNO generators. This financial stability may provide the company with the flexibility needed to capitalize on the opportunities presented by California's renewable energy initiatives.
However, it's important to note that Hyliion is currently not profitable, with a negative P/E ratio of -5.04. The company's revenue for the last twelve months as of Q2 2024 was just $0.1 million, with a significant revenue decline of -95.58% over the same period. These figures suggest that Hyliion is still in its early stages of commercialization, which is not uncommon for innovative technology companies in the renewable energy sector.
Despite these financial challenges, Hyliion has shown strong market performance recently. InvestingPro Tips indicate a significant return over the last week and strong returns over the last month and three months. This positive momentum could reflect growing investor confidence in the company's technology and its potential in light of regulatory developments like the California RPS program approval.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Hyliion Holdings Corp., providing a deeper understanding of the company's financial health and market position.
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