Hydrofuel Canada, a hydrogen-focused company, announced this Monday it acquired a 100% interest in the US-based company Kontak Hydrogen Storage in an all-stock transaction. After it, Hydrofuel would have gained a top-notch patent for hydrogen production.
Firstly, Kontak’s technology can efficiently release hydrogen from a dozen potential carrier molecules. Of all the carriers, the one with the highest storage capacity is anhydrous ammonia, with 17.3% hydrogen by weight stored in liquid form like propane.
Moreover, storing hydrogen in ammonia has become a trend in the industry as it reduces transportation risks. In this regard, Kontak’s patented reactor is the most effective method to date for releasing hydrogen.
In addition, Kontak developed this technology with a National Science Foundation Grant and has patents pending in many countries. Kontak also has patents pending on low-cost combined hydrogen, ammonia, and battery energy station technology that can store as much as three times the energy of conventional systems.
Consequently, Hydrofuel’s acquisition of Kontak significantly expands its footprint in the hydrogen sector; will provide deep tech expertise for further expansion. Indeed, Hydrofuel has been a true leader and pioneer in Canada regarding hydrogen.
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Hydrofuel a true pioneer in hydrogen and ammonia technologies
Back in 1981, Hydrofuel’s CEO, Greg Vezina, drove an ammonia-fueled Chevrolet Impala across Canada, arriving on Parliament Hill on November 5 for a press conference with then Governor-General Ed Schreyer and Energy Minister Marc Lalonde. It was a true milestone for clean fuels.
In fact, ammonia is an extremely promising, environmentally friendly fuel source because it contains no carbon. It has 1.5 times more hydrogen than liquid hydrogen and can substantially reduce global GHG emissions.
About the relevance of the acquisition, Hydrofuel CEO Greg Vezina commented. “$3 million of the proceeds of the Offering will be dedicated for developing, commercialization, and licensing of the Kontak technologies. The remaining $2 million balance will go to the commercialization of Hydrofuel’s proprietary ammonia energy and fuel production, storage, and utilization technologies.”
According to the executive, these technologies include converting diesel and gasoline engines; generators, combined cooling, heating, and power units to use ammonia and hydrogen. Furthermore, the company announced that it would launch a Private Placement Offering of $5 million US.
Finally, Hydrofuel will announce several more ammonia acquisitions and collaboration agreements in Canada, the US, and overseas in the upcoming weeks and months.
