AUSTIN, TX / ACCESSWIRE / July 18, 2024 / Victory Clean Energy (OTC PINK:VYEY) ("Victory" or the "Company"), a leading innovator in the green hydrogen energy sector, announced today it has entered into a binding term sheet to acquire the intellectual property and exclusive rights to use the Cellulose to Hydrogen Power ("CHyP Engine") system for hydrogen power from Proton Power, a technology leader in renewable energy systems designed for producing inexpensive hydrogen on demand from biomass and waste sources.
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The Proton CHyP engine is a solution to the major issues of implementing a green hydrogen economy - specifically: 1) cost 2) distribution and 3) storage.
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Cost: The Company expects the variable operating cost to be 50% lower than today's typical electrolysis production facility.
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Distribution and Storage: As the system is modular, Victory will be able to scale hydrogen production adjacent to demand, reducing and/or eliminating need for storage/transportation
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The entire process is carbon neutral to carbon negative - depending on the application - and does not require electricity from the grid.
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Produces high quality biochar that can be upgraded to graphene.
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The production process is extremely energy efficient, utilizing only a fraction of the electricity necessary to produce hydrogen via electrolysis processes.
"Solving climate change, whether through adopting clean vehicles or reducing emissions from manufacturing sites, will require renewable, dependable, and affordable hydrogen," stated Chris Headrick, Founder and Executive Chairman of Victory. "Victory will leverage the CHyP engine to produce low-cost green hydrogen and to deploy a solution that will supply green hydrogen at a cost approaching grey hydrogen in a process that is carbon neutral to negative."
"The CHyP system emerged from Proton Power co-founder, Dr. Sam Weaver's long-running R&D investments in high-temperature materials and manufacturing across multiple energy sectors. Initial testing indicates the CHyP system is expected to comply with all current and foreseeable emissions standards and to have a neutral to negative overall carbon intensity score."
"Our process is a huge improvement over electrolysis as it only uses 2 kilowatt-hours (kWh) of electricity, which can be CHyP self-generated, to produce 1 kg of hydrogen," commented Dr. Weaver. "This is an important differentiator versus today's electrolysis processes, which require 50 to 55 kilowatt-hours (kWh) of electricity from the grid or other external source to produce 1 kg of hydrogen. This equates to our projected overall cost per kg of hydrogen below $2 - for greater than or equal to 12 tonnes/day facilities. Importantly, there are revenue enhancement opportunities from selling biochar byproduct of the system to make agricultural and livestock enhancement products as well as high-quality graphene feedstock. The CHyP engine is uniquely placed to accelerate the hydrogen economy."
Jim McGinley, Chief Executive Officer of Victory added, "We are very excited about this transaction and believe it will be a game-changer in the green energy marketplace as we work to continue to improve efficiency and commercialization of this innovative technology through planned initial deployment in 2025." Mr. McGinley continued, "it is increasingly clear that biomass pyrolysis is a critically needed technology in achieving world-wide decarbonization."
The CHyP system will be capable of operating on over 100 different types of biomass, including wood, agriculture waste, and most forms of biomass. The CHyP system can generate energy-rich syngas for electricity and, therefore, is not dependent on the grid to operate.
Victory has already announced plans to build its first commercial facility in California for the Redding Rancheria Tribe in 2025. This is planned to be the first of 32 plants nationwide in partnership with the Redding Rancheria Tribe to provide green hydrogen as part of a nationwide infrastructure for hydrogen transportation. Also, in 2025, Victory also plans to build a 3 tonne per day demonstration facility to supply a green charging station, demonstrating the ability to use hydrogen-rich syngas as part of a true carbon-negative and economical charging solution for electric vehicles. Victory is also exploring other co-location partnerships, including ones in the industrial sectors such as refineries, ammonia, steel, and fertilizer, among others, to leverage this technology for cost savings and emissions reductions.
The transaction is expected to be finalized this month but is subject to board approvals of an exclusive license agreement and asset purchase agreements. The acquisition price of $100 million is structured with payments scheduled over a 5-year period, which will allow Victory to focus on deploying capital toward its commercialization efforts. Victory will acquire the CHyP engine intellectual property, utilize the Proton manufacturing facility in Lenoir City, Tennessee, and become a supplier of biochar for Proton's proprietary graphene manufacturing process.
CHyP Announcement Conference Call
VYEY will host a webcast at 12:00 p.m. EST / 11:00 a.m. CST on Wednesday August 7th, 2024, to discuss the acquisition and technology in greater detail. The live webcast of the call and an archived replay will be available online in the Investor Relations section of Victory's website. Those wishing to participate will find link or dial-in information to be announced in a following release.
About Proton
Founded in 2005, Proton Power, Inc. is the brainchild of Dr. Sam Weaver and Dan Hensley, who have developed a renewable energy system designed for producing inexpensive hydrogen on demand from biomass and waste sources. Dr. Weaver and Hensley have a long, 40+ year history of developing successful and innovative technological products from the ground up, including:
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Battery technology utilizing Proton's graphene with substantial increases in storage capacity, charge rate and cycle life
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The highest quality, low-cost graphene
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Aircraft brakes for commercial and military aircrafts
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The first 2800C production furnaces for high strength, high modulus carbon fibers
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Ceramic punch technology and equipment to make the thinnest aluminum beer cans in the world
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Neutron absorbers for nuclear power plants with 87% worldwide market share
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Test and research reactor fuel which provided radioisotopes that served 10 million people annually
Today, Dr. Weaver and Hensley lead an experienced management team with extensive engineering and manufacturing experience at Proton Power. Proton Power has a strong physical presence with 4 locations, and more than 95,000 square feet of manufacturing and office space on 58 acres of land.
About Victory Clean Energy
Victory Clean Energy is an innovative Green Hydrogen energy company dedicated to developing and implementing clean, sustainable low-cost energy solutions with applications across various industries, including transportation, power generation, and industrial processes. The Company's pioneering TrueGreen Hydrogen™ production solutions aim to provide clean, reliable, and cost-effective energy sources to a diverse range of clients. TrueGreen Hydrogen™ positions the Company as a formidable force in the low-cost Green Hydrogen sector, focusing on decarbonization in heavy transportation and industrial Hydrogen markets. With this commitment, Victory Clean Energy is dedicated to shaping a sustainable and cleaner future for industries and communities worldwide. Learn more at https://www.victoryclean.energy.
Forward-Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Victory and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, including any oral statements made in connection therewith, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Victory expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Victory cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Victory. These risks include, but are not limited to, Victory's ability to disrupt the green hydrogen production market, Victory's focus in 2024 and beyond, the effects of Victory's dynamic and proprietary solutions on its customers, accelerated commercialization of the Proton CHyP system, the ability to meet 2024 and future development milestones, the ability to reduce carbon intensity and greenhouse gas emissions, the expected performance and integration of the CHyP system, and other risks and uncertainties. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Victory's operations and projections can be found in its filings with the SEC. Victory's SEC Filings are available publicly on the SEC's website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.
For Information Regarding Proton Power or Victory Clean Energy
CONTACT
David Voyticky
Victory Clean Energy
865.776.6203
d.voyticky@h2eg.com
SOURCE: Victory Clean Energy, Inc.
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