Cummins to Form Joint Venture with NPROXX for Hydrogen Storage

Date:2020-06-30 Source:Cummins

Cummins Inc. (NYSE: CMI), a global technology and power solutions leader, today announced an agreement to form a joint venture with NPROXX, a leader in hydrogen storage and transportation, for hydrogen storage tanks. The joint venture will continue under the name NPROXX.

"We are thrilled to combine Cummins’ expertise, innovation and commitment to customer success with NPROXX’s leading hydrogen storage technologies," said Tom Linebarger, Chairman and CEO, Cummins Inc. "In order to move toward a decarbonized future, the world will require multiple power solutions including advanced diesel, natural gas, electrified power, fuel cells, hybrids and other solutions and Cummins is committed to leading the way and being the provider of choice. The addition of hydrogen storage to our existing capabilities in hydrogen production and fuel cells enables us to accelerate the viability and adoption of these technologies in commercial markets."

The joint venture will provide customers with hydrogen and compressed natural gas storage products for both on-highway and rail applications. The joint venture adds to Cummins rapidly growing hydrogen capabilities and is one of several actions taken in the past year to deepen the company’s capabilities in fuel cell and hydrogen production technologies.

The acquisition of Hydrogenics Corporation in September 2019, provided Cummins with both proton exchange membrane (PEM), and alkaline fuel cells electrolyzers to generate hydrogen. Cummins has also invested in LOOP Energy, signed a memo of understanding with Hyundai Motor Company and invested in the development of solid oxide fuel cells.

“Cummins has more than 2,000 fuel cell installations across a variety of on and off highway applications as well as more than 500 electrolyzer installations,” Linebarger continued. “We continue to increase our capabilities in fuel cell technologies, and this partnership with NPROXX is another step forward. We look forward to partnering closely with NPROXX’s team as we work towards closing this transaction."

"The NPROXX team is eager to work with Cummins to deliver industry-leading hydrogen storage options," said Rainer vor dem Esche, Managing Director, NPROXX. "Partnering with Cummins to provide reliable hydrogen storage options will allow our customers to unlock the potential for hydrogen."

Cummins and NPROXX will each own 50 percent of the new joint venture. The formation of the joint venture is subject to regulatory approvals and customary closing conditions. The parties expect the transaction to close by the end of the first quarter of 2021. The unconsolidated joint venture results will be included as part of Cummins’ New Power business segment.