Hydrogen vehicle maker Hyzon confirms exit from Australian market

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Hyzon, which focuses on deploying its fuel cell technology in heavy-duty commercial vehicles, has confirmed its decision to exit the Australian and Netherlands markets after a comprehensive strategy review amid ongoing losses.

The New York-based company cited waning support from Australian and European governments in the field of fuel cell-powered transportation and the disbandment of hydrogen subsidies across multiple European countries as key reasons for its decision.

Despite the exit, Hyzon said it maintains an interest in returning to the Australian and European markets as a fuel cell system supplier to original equipment manufacturers (OEMs).

Hyzon Chief Executive Officer Parker Meeks said the decision was a “complex and difficult” one.

“Given the challenges of bringing new technology to market in an emerging industry, we believe we need to focus our efforts on the North American market,” he said.

The use of hydrogen as a fuel in heavy vehicles has been floated as a potential strategy to decarbonise Australia’s transport industry in pursuit of net-zero targets.

In 2021 Hyzon established a purpose-built assembly plant in Victoria. Hyzon had also announced pilot programs that would see its hydrogen fuel cells put to work in buses in Queensland, tow trucks in Victoria, and trucks scheduled to service a zinc refinery operation in north Queensland.

Hyzon expects to incur charges of about $25 million (USD 17 million) in connection with planned exit activities, including employee-related costs, non-cash inventory write-downs and non-cash impairment charges.

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