VANCOUVER, British Columbia & LONDON--(BUSINESS WIRE)--Loop EnergyTM (TSX: LPEN) has signed a multi-year fuel cell supply agreement with Tevva Motors Ltd (Tevva), which includes delivery commitments in excess of US$12 million thru 2023. As a result of the agreement, which extends through to 2024, Tevva becomes the first customer to move into the Full Production Phase of Loop Energy’s Customer Adoption Cycle. Details to join the analyst conference call on July 5 are at the end of release.
Tevva will integrate Loop Energy’s fuel cell systems into its manufacturing process as it scales production of its Hydrogen-Electric Trucks to meet demand in 2023. The two companies’ relationship continues to gain momentum after Loop Energy’s eFlowTM technology won the competitive tender process in 2021, which resulted in Tevva placing initial orders.
Building upon Tevva’s orders for 2022, the significant surge in order volume in 2023 increases Loop Energy’s confidence that it will meet and exceed its previous purchase order guidance. The growth in order volume indicates the commercial mobility sector’s willingness to adopt hydrogen fuel cell technology as a zero-emissions solution.
“The market for zero-emissions commercial vehicles continues to develop quickly, and this supply agreement with Tevva puts Loop Energy on the path to not only technology leadership, but fuel cell market leadership,” Loop Energy President & CEO, Ben Nyland said. “This is amongst the largest fuel cell product supply agreements in recent years. The contract with Tevva is indicative of the surge in interest we see in Europe for hydrogen-electric vehicles and the fuel cells that power them. Tevva is quickly establishing itself as a leader in the zero-emission commercial vehicle market in Europe, and we are looking forward to providing the fuel cell systems they need to succeed.”
”Development of our Hydrogen-Electric Truck platform has been extremely encouraging, and we are seeing growing demand for our product line,” Tevva Founder & CEO, Asher Bennett said. ”Loop Energy continues to show it can support our production targets and provide a fuel cell solution that will deliver lower costs and improved performance to our customers. As a result, we are moving closer to our corporate goal of reducing 10 million tonnes of global transportation CO2 emissions by 2030.”
Tevva unveiled its first Hydrogen-Electric Truck alongside Loop Energy at the Road Transport Expo in Warwickshire, UK, on Thursday, June 30. It is anticipated that the first of the trucks will be on the road in 2022. Once deployed, the trucks are expected to rapidly add to the 500,000 kilometres of on-road service Loop Energy’s fuel cells have already powered.
Loop Energy will host an analyst conference call on Tuesday, July 5, at 7:00 am PT (10:00 am ET) to discuss the supply agreement. To attend, please dial 1-877-704-4453 (toll-free) or 1-201-389-0920 (international). A replay of the call will be available for 2 weeks following the call by dialing 1-844-512-2921 (toll-free) or 1-412-317-6671 (international) and entering replay pin 13731384.
About Tevva Motors Ltd.
Tevva is a British electric and hydrogen truck pioneer. Tevva designs and manufactures zero-emission medium-duty trucks with a revolutionary combination of battery electric and hydrogen fuel-cell range extender technology. Tevva trucks are built to revitalize urban freight and logistics – optimising range, cost, driver experience, and environmental impact. Tevva trucks are already on the road and have accrued hundreds of thousands of miles in customer hands. For more information, please visit https://www.tevva.com.
About Loop Energy Inc.
Loop Energy is a leading designer and manufacturer of fuel cell systems targeted at the electrification of commercial vehicles, including light commercial vehicles, transit buses and medium and heavy-duty trucks. Loop’s products feature the company’s proprietary eFlow™ technology in the fuel cell stack’s bipolar plates. eFlow™ is designed to enable commercial customers to achieve performance maximization and cost minimization. Loop works with OEMs and major vehicle sub-system suppliers to enable the production of hydrogen fuel cell electric vehicles. For more information about how Loop is driving towards a zero-emissions future, visit www.loopenergy.com.
About Loop Energy’s Customer Adoption Cycle
The Customer Adoption Cycle ensures Loop Energy supports its customers and partners who are committed to scaling the production of hydrogen-electric vehicles and power applications. Loop Energy’s customer-centric approach includes three phases which support customers in commercializing their products and generates short-and long-term demand for Loop Energy’s fuel cells. The three phases include:
Pilot Phase: Focuses on early-stage prototyping and integration for design, testing and certification.
Scale-Up Phase: Prioritizes increasing production and deploying a limited number of applications for operational use.
Full Production Phase: Involves the commercial rollout of hydrogen-electric product offerings to fleet operators and end-users.
Forward Looking Warning
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflect management’s current expectations and projections regarding future events. Particularly, statements regarding the Company’s expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information, including without limitation the delivery commitments, Tevva’s progression to the Full Production Phase of Loop Energy’s Customer Adoption Cycle, the integration of Loop Energy’s fuel cell systems into Tevva’s manufacturing process, deployment of trucks taking place in 2022 and the expectations of Tevva’s performance and growth plans.
Forward-looking information is based on a number of assumptions (including without limitation assumptions with respect the current and future performance of, and growth in demand for, our products and Tevva’s products) and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control and could cause actual results and events to vary materially from those that are disclosed, or implied, by such forward‐looking information. Such risks and uncertainties include, but are not limited to, our ability and the ability of Tevva to execute on our respective strategies and growth plans, the realization of electrification of transportation, the elimination of diesel fuel and ongoing government support of such developments, the expected growth in demand for fuel cells for the commercial transportation market and the factors discussed under “Risk Factors” in the Company’s Annual Information Form dated March 23, 2022. Loop disclaims any obligation to update these forward-looking statements.