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Clean Power Capital Corp. has increased its investment in PowerTap Hydrogen Fueling Corp. by acquiring an additional 4.5% equity interest in PowerTap. The company initially invested in PowerTap on October 27, 2020 by acquiring a 90% equity interest. With the latest investment, Clean Power has increased its equity interest in PowerTap to 94.5%.

PowerTap is leading the charge to build out cost-effective hydrogen fueling infrastructure through its environmentally friendly intellectual property, product design for the modularized and lowest tier production cost of hydrogen and launch plan. PowerTap technology-based hydrogen fueling stations are already located in private enterprises and public stations (near LAX airport) in California, Texas, Massachusetts, and Maryland.

Since Clean Power’s initial investment, PowerTap has been developing its hydrogen fueling station network in stages, consisting of engineering & design; ongoing development of PowerTap 3.0; and permitting and site preparation.

Most recently, PowerTap signed a definitive agreement with Humboldt Petroleum, Inc., Peninsula Petroleum, LLC, and Colvin Oil I LLC, collectively referred to as “the Andretti Group” to locate PowerTap’s hydrogen station technology at select Andretti Group properties.

Under the terms of definitive agreement, the Andretti Group will further help market PowerTap’s technology to third-party chain retailers, major oil companies and independent stations through the Andrettis’ deep network of automotive industry connections.

Clean Power’s investments in PowerTap aligns well with the energy industry focusing on transitioning more into hydrogen-based energy as demonstrated by the USA President Biden’s most recent executive orders to drive the USA to a clean energy future by achieving a carbon pollution-free power sector by 2035 and putting the USA on an irreversible path to a net-zero economy by 2050; and Canada’s recently announced hydrogen strategy, which sets sets an ambitious framework to cement hydrogen as a key part of Canada’s path to net-zero carbon emissions by 2050.

Taking advantage of the energy industry’s momentum towards investments in the development of hydrogen-based technology and the anticipated increase in demand for hydrogen-based fuel, the investment in PowerTap takes advantage of favourable market conditions and is aligned with the company’s investment policy, which was previously amended and restated to include the renewable energy sector as an area of focus for the company.

After the initial investment to acquire 90% of PowerTap, the company completed this follow-on investment to increase Clean Power’s investment in PowerTap to 94.5%. The consideration paid to the vendors for the additional 4.5% of PowerTap consisted of an aggregate of 18,000,000 common shares in the capital of the company at a deemed value of $2.72 per Consideration Share. The vendors are arm’s-length to one another and none of whom, individually holds 10% or more of the issued and outstanding shares of the Company on a non-diluted basis.

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