Powertap Hydrogen Capital Corp. provided an update on its zoning application activities for its initial stations in Northern California, development, final engineering of its Gen3 modular blue hydrogen production and dispensing unit (MHPDU), and on the supply of renewable natural gas for newly developed Gen3 units. With some delays due to pandemic constraints, zoning approval is moving forward for the first Andretti station incorporating a PowerTap Gen3 MHPDU, located in Fortuna, in Humboldt County, California.

The initial public hearing is scheduled for May 2022 and the PowerTap team is gearing up for full participation in the hearing. With zoning approval of the Fortuna station, the company anticipates construction and installation permits processing to yield approvals in third quarter/fourth quarter of 2022, with construction to follow. In reference to final engineering, PowerTap has engaged with T2M Global (“T2M”) to complete the final prototype engineering for manufacturing using the breadth of T2M's technology development, commercialization, strategic advisory and business/supply chain development services.

The T2M team has best in-class engineers with depth and significant expertise in hydrogen, specifically, the critical technical arenas of heat transfer, compression, and storage, as well as station deployment. T2M will work with contract manufacturer, Capstone Green Energy, to develop and deploy a world class PowerTap manufacturing process in Capstone's facilities. Regarding PowerTap's supply of renewable natural gas (“RNG”) or biomethane for production of hydrogen through the Gen3 MHPDU, the Company has established a non-binding letter of intent with an RNG vendor to provide supply of RNG through 2027 at very competitive pricing as it pursues its plan to deploy blue hydrogen MHPDUs across California and beyond.

The RNG vendor has agreed, through its project partners, to provide RNG that would provide a total carbon intensity (“CI”) of zero or less in a blend of 41% RNG to 59% fossil fuel natural gas required to produce hydrogen through the Gen3. It is this blend of RNG that enables PowerTap to maximize the carbon credits it expects to earn via the State of California Low-Carbon Fuel Standard (“LCFS”) program.