Victory Clean Energy has entered into an agreement to acquire innovative, low-cost green hydrogen production technology from Proton Power

AUSTIN, TX / ACCESSWIRE / July 18, 2024 / Victory Clean Energy (OTC PINK:VYEY) (“Victory” or the “Company”), a leading innovator in the green hydrogen energy sector, today announced that it has entered into a binding term sheet under which it will acquire the intellectual property and exclusive rights to use the Cellulose to Hydrogen Power system (“CHyP Engine”) to generate hydrogen energy from Proton Power, a technology leader in renewable energy systems designed to produce affordable hydrogen on demand from biomass and waste.

The Proton CHyP engine addresses the key challenges of implementing a green hydrogen economy: 1) cost, 2) distribution and 3) storage.
Cost: The Company anticipates variable operating costs to be 50% lower than a typical electrolysis manufacturing facility.
Distribution and storage: Because the system is modular, Victory will be able to scale hydrogen production based on demand, reducing and/or eliminating the need for storage/transportation
The entire process is carbon neutral or negative (depending on the application) and does not require grid power.
Produces high-quality biochar that can be refined into graphene.
The production process is extremely energy efficient, using only a fraction of the electrical energy needed to produce hydrogen via electrolysis.

“Solving climate change, whether through the adoption of clean vehicles or reducing emissions from manufacturing plants, will require renewable, reliable and affordable hydrogen,” said Chris Headrick, Victory’s founder and executive chairman. “Victory will leverage the CHyP engine to produce low-cost green hydrogen and implement a solution that delivers green hydrogen at a cost similar to grey hydrogen in a process that is carbon neutral or negative.”

“The CHyP system is the result of Proton Power co-founder Dr. Sam Weaver’s long-term investment in research and development in high-temperature materials and manufacturing across multiple energy sectors. Initial testing indicates that the CHyP system is expected to meet all current and foreseeable emissions standards and be environmentally neutral. negative “overall carbon intensity score.”

“Our process is a huge improvement over electrolysis because it uses only 2 kilowatt-hours (kWh) of electricity, which can be generated by CHyP, to produce 1 kg of hydrogen,” Dr. Weaver commented. “This is a significant differentiator from today’s electrolysis processes, which require 50 to 55 kilowatt-hours (kWh) of electricity from the grid or other external source to produce 1 kg of hydrogen. This equates to our projected total cost per kg of hydrogen of less than $2—for facilities greater than or equal to 12 tons per day. Importantly, there are opportunities to increase revenues from the sale of biochar as a byproduct of the system to produce products that improve agricultural and livestock quality, as well as high-quality graphene feedstock. The CHyP engine is uniquely positioned to accelerate the hydrogen economy.”

Jim McGinley, Victory’s CEO added, “We are very excited about this transaction and believe it will be a game-changer for the green energy market as we work to further improve the efficiency and commercialize this innovative technology through a planned initial deployment in 2025.” Mr. McGinley continued, “it is increasingly clear that biomass pyrolysis is a critically needed technology in achieving global decarbonization.”

The CHyP system will be able to operate on over 100 different types of biomass, including wood, agricultural waste and most forms of biomass. The CHyP system can generate energy-rich syngas to produce electricity and is therefore not dependent on the grid to operate.

Victory has already announced plans to build its first commercial facility in California for the Redding Rancheria in 2025. This is to be the first of 32 facilities across the country in partnership with the Redding Rancheria to provide green hydrogen as part of a nationwide hydrogen transportation infrastructure. In addition, Victory also plans to build a 3-ton-per-day demonstration facility in 2025 that will provide a green charging station, demonstrating the feasibility of using hydrogen-rich syngas as part of a truly carbon-negative and cost-effective electric vehicle charging solution. Victory is also exploring other colocation partnerships, including in industrial sectors such as refineries, ammonia, steel and fertilizer, among others, to leverage this technology to lower costs and reduce emissions.

The transaction is expected to close this month, but is subject to board approvals on an exclusive license agreement and asset purchase agreements. The purchase price of $100 million is set with payments scheduled over a 5-year period, allowing Victory to focus on investing capital in commercialization efforts. Victory will acquire the CHyP engine intellectual property, utilize Proton’s Lenoir City, Tennessee manufacturing facility and become a biochar supplier for Proton’s proprietary graphene production process.

CHyP Announcement Telephone Conference
VYEY will host a webcast at 12:00 PM ET/11:00 AM CST on Wednesday, August 7, 2024 to discuss the acquisition and technology in more detail. A live webcast of the call and an archived recording will be available online on the Investor Relations section of Victory’s website. Those interested in participating will find a link or call information to be announced in a future release.

About Proton
Founded in 2005, Proton Power, Inc. is the brainchild of Dr. Sam Weaver and Dan Hensley, who have developed a renewable energy system designed to produce affordable hydrogen on demand from biomass and waste. Dr. Weaver and Hensley have a long history of developing successful and innovative technology products from the ground up, spanning more than 40 years, including:

Proton Graphene Battery Technology Delivers Significant Increases in Storage Capacity, Charging Speed, and Cycle Life
Top quality, affordable graphene
Aircraft brakes for commercial and military aircraft
First 2800C production furnaces for high-strength, high-modulus carbon fiber production
Technology and equipment for producing the world’s thinnest ceramic beer cans
Neutron absorbers for nuclear power plants with 87% of the global market share
Fuel for test and research reactors that provided the radioisotopes needed by 10 million people a year

Today, Dr. Weaver and Hensley lead a seasoned management team with extensive engineering and manufacturing experience at Proton Power. Proton Power has a strong physical presence with 4 locations and over 95,000 square feet of manufacturing and office space on 58 acres of land.

About Victory Clean Energy
Victory Clean Energy is an innovative Green Hydrogen energy company dedicated to developing and deploying clean, sustainable and affordable energy solutions with applications across a variety of industries, including transportation, power generation and industrial processes. The company’s pioneering TrueGreen Hydrogen™ manufacturing solutions are designed to deliver clean, reliable and affordable energy to a diverse group of customers. TrueGreen Hydrogen™ positions the company as a force in the low-cost Green Hydrogen sector, with a focus on decarbonizing the heavy-duty transportation and industrial hydrogen markets. With this commitment, Victory Clean Energy is dedicated to shaping a sustainable and cleaner future for industries and communities around the world. Learn more at https://www.victoryclean.energy.

Forward-looking statements
The information contained in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of current or historical fact contained in this press release, regarding Victory and its future financial and operating results, strategy, future operations, estimated financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, including any oral statements made in connection with this press release, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions regarding future events and are based on currently available information regarding the results and timing of future events. Except as required by applicable law, Victory expressly disclaims any obligation to update any forward-looking statements, all of which are expressly identified in these statements, to reflect events or circumstances after the date of this press release. Victory cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond Victory’s control. These risks include, but are not limited to, Victory’s ability to disrupt the green hydrogen production market, Victory’s concentration in 2024 and beyond, the impact of Victory’s dynamic and proprietary solutions on its customers, the accelerated commercialization of the Proton CHyP system, the ability to achieve development milestones in 2024 and beyond, the ability to reduce carbon dioxide and greenhouse gas emissions intensity, the expected performance and integration of the CHyP system, and other risks and uncertainties. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. If one or more of the risks or uncertainties described in this press release materializes or if underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information regarding these and other factors that could affect Victory’s business and outlook can be found in its filings with the SEC. Victory’s filings with the SEC are publicly available on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures contained in such documents.

Information about Proton Power or Victory Clean Energy

CONTACT
David Wojticki
Victory Clean Energy
865.776.6203
(email protected)

SOURCE: Victory Clean Energy, Inc.