HRS, a European leader in the design and construction of hydrogen refueling stations, has signed a partnership agreement with Hype for the supply of 8 HRS hydrogen stations between 2022 and 2023, as part of the deployment of its proprietary green hydrogen production and distribution network, designed to support the development of carbon-free mobility, primarily for Hype taxis. This contract has a potential revenue of around €24 million.
The stations will be primarily installed in the Île-de-France region to help Hype achieve its goal for the 2024 Olympics: 10,000 taxis with a network of 20 stations capable of producing 1,000 kg/day of green hydrogen locally.
Hype and HRS are collaborating to develop the French sector, first through a significant expansion of the distribution capacity of the hydrogen station base, and then, in a second phase, on a European level. Hype’s ambition is to deploy 10,000 hydrogen taxis and 20 high-capacity stations in the Île-de-France region for the Paris 2024 Olympic Games, while directly operating the world’s largest fleet of hydrogen taxis, which should exceed 700 vehicles in 2022. As part of this collaboration, the partners will pool their expertise through a program that will exchange data collected by Hype on its fleet of vehicles and station base to improve the performance of the HRS stations.
HRS will also subscribe for €6 million in convertible bonds issued by HYPE, with a capitalized interest rate of 4.5 percent and a maturity of 9 years. HR Holding, the majority shareholder of HRS, with Hassen Rachedi, Chairman and Chief Executive Officer of HRS, holding 93.16 percent of the capital, will also subscribe to this bond issue in the amount of €2 million. Under certain conditions and in limited cases, such as a change of control, an initial public offering, or the issuance of securities worth more than €10 million, these bonds may be converted into HYPE shares before their maturity date for a period of two years.
Hype will order 6 stations with a capacity of 1,000 kg/day and 2 stations with a capacity of 200 kg/day under this contract by June 30, 2023. HRS’s unique expertise in compression, industrial development, and safety will be used to develop these very large capacity and latest-generation stations (dual pressure 350 and 700 bar).
The first two stations, one with a capacity of 1000 kg/day and the other with a capacity of 200 kg/day, will be ordered as soon as the bond issue in favor of HRS is completed.
The other stations, which could generate up to €19 million in revenue, will be ordered pending the receipt of grants requested by Hype. Hype intends to expand to 15 additional cities in France and around the world by the end of 2024, with the next two locations to be announced in early 2022.
The agreement also includes a commitment by Hype to be supplied exclusively by HRS for the next five 200 kg/day stations needed for its operations in France, as well as a commitment to negotiate a co-exclusivity framework agreement for the joint deployment of at least 50 HRS stations by the end of 2022. As part of this agreement, HRS will be one of Hype’s only two preferred partners for the supply of stations for its deployment in France and around the world. HYPE and McPhy will enter into a similar co-exclusivity agreement for the supply of stations and electrolysers.
