Could this fuel cell startup be the next big thing in the electric vehicle space following a potential merger?
That mouthful of a name may not be an issue much longer as, according to reports, Decarbonization Plus Acquisition Corp (NASDAQ: DCRB) has reached an agreement to bring Hyzon Motors public via a SPAC.
Investors may have had their faith in SPACs shaken after the whole Clover Health drama last week, but that’s no reason to stop us from digging into Hyzon Motors to see what could be on the cards here.
What is Hyzon Motors?
Hyzon is a spinoff of Singapore’s Horizon Fuel Cell Technologies and is a global supplier of zero-emissions hydrogen fuel cell-powered commercial vehicles.
The merger makes a lot of sense as pure-pay fuel cell makers are very popular right now — Plug Power is up 1,400% in the past year alone — and $DCRB is led by Erik Anderson, who raised $226 million in an IPO last October with the specific goal of merging with a company like Hyzon.
Hyzon specializes in the niche market of fuel cells for heavy-duty trucks, buses, and coaches. Thanks to the recent explosion of e-commerce and the increased need for improved delivery systems, there is a lot of emphasis on alternative fuel vehicles. Though there are several fuel cell competitors looking into big rig technologies, this industry could facilitate multiple players, while the significant windfall expected from this merger would allow scaling of Hyzon’s nascent U.S. business — the merged companies are expected to be valued at roughly $2 billion.
Niche or not, sustainable investors will be sure to have a keen eye on this development.
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