The CEO of Hyzon Motors, Parker Meeks, has resigned from the hydrogen fuel cell venture as its directors search for a buyer—either for the company as a whole or its various assets in pieces— in preparation for the company’s dissolution.
The leaders of Illinois-based Hyzon—which has focused its efforts on the refuse truck market but has burned through at least $8 million of cash in each of the last eight quarters—have been looking for an acquirer or big investor since June. If they don’t find one very soon, they said last week that the company will permanently cease all operations in the second half of this month and close its Illinois and Michigan plants.
The company, a spin off of Singapore-based Horizon Fuel Cell Technologies, went public via a SPAC in July 2021. Meeks had led the company essentially since August 2022, when he took over as interim CEO after founding CEO Craig Knight was dismissed after the company was accused of inflating orders in China. Meeks, formerly of McKinsey & Co., permanently took over in April 2023. He resigned as an officer and director, effective immediately, on Feb. 4.
In a regulatory filing, Hyzon Chief Legal Officer John Zavoli said Meeks’ exit was not the result of any disagreement about the company’s operations or other policies. Stepping in to fill Meeks’ seat—and work alongside Chief Restructuring Officer Glenn Kushiner, who was brought on the week before Christmas—is Chief Technology Officer Christian Mohrdieck, who will be president and acting CEO.
Mohrdieck is a veteran Daimler AG executive who has been Hyzon’s chief technology officer since the beginning of last year. Before that, the 65-year-old was chief commercial officer of cellcentric GmbH, a 50/50 joint venture between Daimler Truck and Volvo Group to commercialize fuel cells.
In the 12 months that ended Sept. 30, Hyzon booked $10.7 million in sales but lost nearly $170 million from operations as it invested in the development, testing, and production of its 200-kW fuel cell platform. Along the way, executives trimmed the company’s headcount from 370 in the fall of 2023 to 240 a year later. On Dec. 19, they notified labor officials in Illinois and Michigan that they planned to lay off workers there by late this month.
CFO Stephen Weiland is preparing to stick around beyond the end of February. He recently signed an amendment to his contract that incentivizes him to help bring about a Hyzon sale or investment of some sort. Starting Feb. 19, Weiland’s salary will be cut by a third to an annual basis of $301,500, but he will make back the prorated difference if Hyzon closes a transaction that nets it at least $500,000. He also will be eligible for 10% of net proceeds above $750,000 from a sale of Hyzon’s intellectual property.
Another one bites the dust
While it’s not surprising that a fuel-cell-related company has failed to make it to the trucking sector—because none have so far—Hyzon seemed to have made a wise move by focusing on the refuse market. Hyzon and truck body manufacturer New Way Trucks debuted North America’s first hydrogen fuel cell-powered garbage truck last May at Waste Expo in Las Vegas and had conducted customer trials in California and Canada.
The company had also been piloting its 200-kW fuel cell system, installed by Fontaine Modification into Freightliner Cascadia, claiming in 2024 it was production-ready.
It does not appear that production will ever take place as Hyzon readies itself to join the growing list of failed zero-emission companies. For example, in January, EV-maker Canoo filed for Chapter 7 bankruptcy and began to liquidate its assets. A year earlier, Canoo had acquired assets from another failed electric van startup called Arrival. The UK-based Arrival had at one time made a deal with UPS to provide an initial 10,000 electric vans, with an option for 10,000 more. That never materialized.
The battery-electric market has, however, produced several winners in every commercial vehicle class. Amazon has included several electric vans in its last mile fleet, including from Rivian, from which the e-commerce giant ordered 100,000 units. Amazon deliveries may also come from BrightDrop Zevo, owned by General Motors' Envolve unit, and the Ford E-Transit.
The Tesla Semi has pushed the boundaries of expected range, with a demonstrated ability to travel more than 1,000 miles in 24 hours. Hydrogen trucks were supposed to win out against BEVs in the range category. Also working against fuel cell trucks is a lack of hydrogen fueling stations and, more concerning, the cost of hydrogen. In California, 1 kg of hydrogen can cost upwards of $34, according to S&P Global.
Nikola Corp., which has had far more success generating revenue with its cabover-style FCEVs, may not be far behind Hyzon. It, too, is running low on cash, with reports of recurring downtime issues related to the fuel tanks. The Phoenix-based company also just sold off its battery assets, which it previously bought from Romeo Power to Mullen Automotive. Nikola recalled all of its BEVs in 2023 due to a rash of onboard fires. Nikola is currently looking for a buyer, as the company announced in November it did not have enough cash on hand to last past this March.
That leaves major OEMs as the last best chance for hydrogen. Hyundai announced that 21 Xcient FCEVs will be put to use by Hyundai Motor Group Metaplant America, transporting parts to its Megasite in Georgia. Kenworth and Toyota have partnered on an FCEV version of the popular Kenworth T680, while Daimler Truck is expected to launch a FCEV toward the end of the decade.
