HyAxiom, Inc. Announces Completion of $150 Million Private Placement
Company Secures Financing to Accelerate Growth
East Hartford, Conn., July 17, 2023 - — HyAxiom, Inc., a leading developer and manufacturer of fuel cell and electrolyzer solutions (“HyAxiom” or the “Company”), announced today the completion of a private placement of convertible preferred stock in an aggregate amount of approximately $150 million (the “Private Placement”), led by three Korean investment firms - Korea Investment Private Equity, KDB Investment–Hana Securities and KB Asset Management.
The Company intends to use the net proceeds of the Private Placement for capital expenditure, research and development, as well as for working capital and general corporate purposes, as HyAxiom focuses on expanding its U.S. and global business as well as developing and launching new products, including the expansion of production and continued research and development of its PEM electrolyzer (PEMEC) system, which was launched this year.
“This investment comes at a critical juncture, as we finalize the development of new clean energy solutions and move towards commercializing these offerings, including our first electrolyzer system. The funds will help expedite our growth and take full advantage of the impetus provided by the Inflation Reduction Act and the recently announced ‘U.S. National Clean Hydrogen Strategy and Roadmap’,” said CEO Jeff Hyungrak Chung.
The securities sold and issued in the Private Placement have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an applicable exemption from such registration requirements.
This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About HyAxiom, Inc.
HyAxiom develops, manufactures, installs and services reliable and innovative energy solutions, including stationary fuel cells and electrolyzers, for utility, industrial and commercial customers who seek cleaner and more sustainable sources of energy. The world’s first and largest stationary fuel cell power plant (50 MW) running on direct hydrogen, which entered commercial service in 2020 in Korea, is powered by a hydrogen-fueled variant of HyAxiom’s flagship product, the PureCellⓇ M400.
In the U.S., HyAxiom has deployed around 50MW of total generation capacity between 2010 and 2022, amounting to more than 117 PureCellⓇ M400 units. HyAxiom is continuing to expand its presence in the U.S. by working with a variety of customers and partners in the Microgrid, Utility, and C&I (Consumer and Industrial) sectors, including by participating in port authority projects and government sponsored regional clean energy generation initiatives such as Connecticut’s Shared Clean Energy Facility (SCEF) projects, one of which was recently awarded to HyAxiom.
Formerly known as Doosan Fuel Cell America, Inc. (DFCA), the Company was established in 2014 by uniting two industry powerhouses, UTC Power, a division of United Technologies Corporation, and Doosan Group. Known for technological innovation, UTC Power developed and supplied the fuel cells used aboard the Apollo spacecrafts in the late 1960s. With a history dating back to 1896, Doosan Group is the oldest and one of the most prominent conglomerates in Korea, with a focus on power generation, desalination, infrastructure development and compact construction equipment manufacturing (including Bobcat, the U.S.-based leader in the compact construction equipment space). In 2022, the Company rebranded as HyAxiom, a portmanteau signifying the axiomatic role that hydrogen-based energy systems are expected to play in meeting the ever-growing demand for cleaner energy.
The PureCellⓇ M400, HyAxiom’s proprietary phosphoric acid fuel cell (PAFC), is credited with solidifying the company’s strong foothold in the fuel cell industry. With features that include an expected 10-year maximum stack life, 90 percent efficiency in combined heat and power applications, load-following capabilities, fuel flexibility (natural gas, liquefied petroleum gas and hydrogen), high versatility in installation (including indoors, outdoors, rooftops and in multiple stacks), and environmental, social and governance (ESG) benefits with CARB (California Air Resources Board) certification, HyAxiom fuel cells have become a favored choice for a wide range of users and applications, including municipalities, educational institutions, electric utilities, industrial facilities and microgrids, to name a few.
Leveraging the technical expertise and know-how acquired through decades of designing, developing, and manufacturing fuel cell systems, HyAxiom is developing a 300-kilowatt solid oxide fuel cell (SOFC) product, which will further increase the Company’s product portfolio for the stationary fuel cell market.
In the mobility sector, HyAxiom is developing a PEMFC powerpack that can provide clean energy to power buses, heavy to medium-duty trucks and other industrial vehicles. Simultaneously, HyAxiom is developing a SOFC product that will be engineered for use as a propulsion system in the maritime sector. Last year, HyAxiom entered into an agreement with Shell, Korea Shipbuilding & Offshore Engineering and DNV to develop and deploy a SOFC-propulsion system for use in Shell’s LNG tankers and other maritime applications. (end)
Media Contact
Linda M. Colon
linda.colon@doosan.com
860.338.8781