On-site power generator firm Cummins Inc. has closed on its latest strategic move into the fuel cell and hydrogen-fueled sector.
Cummins has acquired Canada’s Hydrogenics Corp., which provides fuel cell and hydrogen production technologies, for an announced enterprise value of about $290 million. French firm Air Liquide will own approximately 19 percent of Hydrogenics while Cummins holds the rest.
Cummins, which is known for producing diesel and gas-fired engines and generator sets, began working on the fuel-cell potential more than 20 years ago. Owning Hydrogenics will allow the company to offer a range of fuel cell and hydrogen generation from electrolysis capabilities.
“Hydrogenics is one of the world’s premier fuel cell and hydrogen production technologies providers and their expertise and innovative approach will strengthen Cummins’ fuel cell capabilities,” Cummins CEO Tom Linebarger said in a statement. “This is another step forward as we continue to invest in a broad range of clean, fuel-efficient and high-performing products and technologies that deliver value to our customers.”
Hydrogenics will report under Cummins’ Electrified Power Business segment, led by Thad Ewald, vice president – corporate strategy, and its operations will continue to be headquartered in Mississauga, Canada. Founded in 2018, the Electrified Power business designs and manufactures fully electric and hybrid powertrain systems along with innovative components and subsystems to serve commercial markets as they adopt electrification.
Indiana-based Cummins is one of several traditional gas or diesel-fueled generation firms globally increasing their stake in a potential hydrogen future. The gas must be created from the electrolysis process, but hydrogen does not emit carbon dioxide when burnt, unlike coal or natural gas.
Mitsubishi Hitachi Power Systems, MAN Energy Solutions and Siemens are among those firms working on hydrogen powered solutions.
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Companies such as MHPS will present sessions on the potential of hydrogen and other potential future resources at POWERGEN International, happening Nov. 19-21 in New Orleans.