Hydrogen does not emit climate-damaging carbon like diesel or petrol. (File image) Photo: Marika Khabazi
A deal to put 20 hydrogen-powered trucks on the road with $6 million of taxpayer funding has been upended - just days from the first two vehicles being delivered.
The US company Hyzon was modifying diesel trucks in Australia for the New Zealand-owned truck leasing company TR Group, but has suddenly pulled out to focus on America.
The first two trucks were due in New Zealand in early August.
TR Group's group general manager Brendan King said the company got no advance warning, but no money had been lost.
"Don't get me wrong, it's frustrating. We'd prefer this wasn't happening."
This was not a blow to hydrogen power, and the company was "actually still very committed", he said.
The Hyzon deal was first done in 2021 through the Energy Efficiency & Conservation Authority.
The authority put in $2m, with another $4m available from the Covid Response and Recovery Fund.
It was lauded as part of a wider plan to get a hydrogen refuelling network up and running.
Hyzon had so far modified four trucks, which had been performing well in months of testing in Australia, King said. Two had been due on a ship on 2 August.
"We were getting pretty excited, we were getting close."
TR Group had not paid Hyzon, as the trucks had to prove themselves in more testing here.
It had spent EECA's $2m to cover about 40 percent of the unmodified trucks, but would give that back if TR Group kept them as diesels, King said.
The trucks could still go hydro: In one scenario, the administrators over the Tasman might find a buyer for Hyzon's operation there.
"We have a right to walk away from that deal, yes. [But] not yet - we will wait and see what happens."
TR Group also had three other options to get the trucks modified.
One was with Rolleston company Global Bus Ventures, which was already doing its first hydro truck for TR Group. A second option was Hyundai, which TR Group got to modify a truck that just clocked up 100,000km for NZ Post, while a third was with Chinese modifiers.
"We're committed to doing it, it's the right thing ... we'll get there," King said.
EECA has been approached for comment.