Hyzon, a U.S.-based manufacturer and global supplier of high-performance H₂ fuel cell systems focused on providing zero-emission power to decarbonize the most demanding industries, announced that after considering its options as well as completing its assessment of the challenging market conditions across Europe and Australia, the company will halt its operations in the Netherlands and Australia.

In comparison to North American efforts to accelerate the H₂ transition and adoption of zero-emission, fuel cell technology, Hyzon said the government support for fuel cell-powered transportation in Europe and Australia has waned, including the disbandment in many European countries of H₂ subsidies. Hyzon currently intends to maintain the potential to return to the European and Australian markets as a fuel cell system supplier to original equipment manufacturers (OEMs).

"I would like to express my utmost gratitude to our dedicated European and Australian teams who have tirelessly worked toward advancing the H₂ transition," said Hyzon Chief Executive Officer Parker Meeks. "This was a complex and difficult decision. 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 and refuse industry as well as overseeing our large fleet trial programs, which commence this summer."

In connection with the planned exit activities, the company expects to incur charges of approximately $17 MM, of which approximately $7 MM is expected to be in cash. Components of the charges include non-cash inventory write-downs of approximately $7 MM, employee-related costs of approximately $3 MM, other exit-related costs of approximately $4 MM and non-cash impairment charges of approximately $3 MM. The company expects to incur these costs in the second and third quarters of 2024 and make the related cash payments in the third and fourth quarters of 2024. Further, the company anticipates derecognition of certain liabilities, which may result in non-cash gains in the third and fourth quarters of 2024. The company is presently unable to estimate these non-cash gains.

Strategic capital efforts and liquidity management. The company continues to pursue its previously disclosed efforts to secure capital via the capital markets and explore various other strategic alternatives. These alternatives include a sale of all or a portion of the company, a potential divestiture of its Europe and / or Australia/New Zealand businesses and subsidiaries, additional cost reductions, liquidity management, a reduction in workforce and other significant corporate transactions. The company is also evaluating the need to pursue bankruptcy protection or other in-court relief if its financing efforts or other strategic alternatives are not successful.

In closing, despite its decision to halt the Netherlands and Australian operations, the company reaffirms its commitment, subject to its success with respect to capital raising and various other strategic alternatives, to better position its first-to-market, zero-emission single stack 200-kW H₂ fuel cell technology for the North American Class 8 and refuse truck FCEV platforms. These platforms will both be featured in significant large-fleet trial programs throughout the United States and Canada starting this summer. Additionally, the Company continues to optimize its operations in China.