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CHAR Announces California Green Hydrogen Project With Hitachi Zosen Inova

Press Release

TORONTO, July 23, 2021 (GLOBE NEWSWIRE) -- CHAR Technologies Ltd. (“CHAR”) (TSXV: YES) announces a test project with Hitachi Zosen Inova (HZI) to develop a high temperature pyrolysis to green hydrogen system at their existing San Luis Obispo (SLO) anaerobic digestion facility in California. Under the definitive agreement with HZI’s SLO operating company, CHAR’s high temperature pyrolysis system will process 18,000 tonnes per year of solid anaerobic digestate into 1,320 tonnes of green hydrogen per year, and 2,800 tonnes per year of biocarbon. The project will be delivered under a BOOT (build-own-operate-transfer) model, where CHAR will be the initial project owner, with HZI managing system operations. While CHAR owns the assets, CHAR will receive revenues directly for the project outputs (green hydrogen and biocarbon). Upon executing the transfer, at their option, HZI’s subsidiary will purchase the project for a one-time payment. Ongoing project output revenues will be dispersed based on a predefined agreement.

“We’re excited to work with HZI, a global anaerobic digestion system developer who just celebrated their 100th Kompogas plant, to further add value to the waste streams they process,” said Andrew White, CEO of CHAR. “The HZI SLO facility currently produces green electricity from green bin wastes, and adding our system allows for the additional production of green hydrogen into the California market.”

Heath Jones, HZI’s Managing Director for North America stated, “Hitachi Zosen Inova is committed to innovating and developing projects that harness the methane released from waste and support a carbon free economy. We are always looking for progressive ways to expand our net negative carbon footprint and draw even more value from the waste processed at our renewable gas facilities. Adding CHAR’s innovative technology to create green hydrogen and biochar at HZI’s Anerobic Digestion plant in San Luis Obispo continues to showcase both HZI and CHAR’s commitment to building a carbon free economy.”

With the commercial terms agreed to, CHAR and HZI will collaboratively engage with the community of San Luis Obispo. It is anticipated that a community education meeting will take place in the near future.


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