Clean Power's PowerTap Signs Definitive Agreement with Andretti Group to Both Install At Existing Gas Stations and To Distribute PowerTap Hydrogen Fueling Stations - Seite 2

PowerTap believes that a lack of hydrogen fueling station locations in the United States (currently under 100 public hydrogen stations in operation in the US with 41 of those in California) is the primary impediment to rapid adoption of hydrogen and presents an enormous opportunity in the clean energy industry for vehicles including long haul Class 8 trucks and cars. Hydrogen currently supplies less than five (5) percent of the world’s energy, but according to a recent report in the Wall Street Journal, this could reach nearly 25% of global energy consumption by 2050 and generate more than US $2.5 trillion in direct revenue annually in that time¹.

Andretti Group Chairman Mario Andretti and partner/son Michael Andretti commented, “Given our long family lineage around the automobile, we are thrilled to be on the vanguard of new transportation technology---especially in this very exciting and promising area of Hydrogen Fuel Cells. We are always energized at being first in the application of innovative technologies. We relish the prospect of leading America’s move to cleaner and more efficient energy.”

Andretti Group Managing Member and CEO, MJ Castelo, also noted, “Our team is delighted to bring our fuel delivery experience and exceptional industry sector passion to the PowerTap initiative. We are certain to add value facilitating hydrogen fueling to our industry colleagues----and creating a new customer value proposition, as well as a robust new profit center for operators.”

PowerTap hydrogen fueling stations that are to be installed at any of the Andretti Group locations will be governed by location-specific agreements between PowerTap and the applicable Andretti Group participants who operate such locations. These location operation agreements will set out specific details of each such arrangement, including without limitation, a revenue share as it relates to the installed fueling stations. Additionally, the Andretti Group will receive the exclusive US rights to distribute PowerTap’s proprietary onsite hydrogen fueling technology, on behalf of PowerTap, to third party gas stations and truck stops in the United States, with the Andretti Group together with the third-party operators, similarly receiving revenue share consideration related to third party participant fueling stations under the respective location operation agreements. PowerTap will contribute an initial US $1.25 mm to the Andretti Group initiative, enabling Andretti/PowerTap to quickly operationalize and accelerate deployment of its unique patented technology and a compelling retailer “revenue share” model.