The transaction will generate about $626 million of gross proceeds, including $400 million from participants in a private investment in public equity including BlackRock Inc., Fidelity Management & Research Co. and Wellington Management. Decarbonization Plus is a special purpose acquisition company, or SPAC, that raised about $226 million in an initial public offering in October. It is backed by private equity firm Riverstone Holdings.
Hyzon, a maker of hydrogen-powered big rigs, buses and coaches, is the latest in a string of clean-energy vehicle startups to pursue SPAC mergers. Investor interest has intensified since U.S. startup Nikola Corp. went public in June in a deal with blank-check company VectoIQ Acquisition Corp. Despite having no meaningful revenue, Nikola’s market value surged as high as $28.8 billion before sliding back to its current valuation of about $9 billion.
Hyzon was spun out of Singapore-based Horizon Fuel Cell Technologies Pte, which has been developing fuel cell technology for commercial applications for almost 20 years. The startup, whose investors include the strategic venture-capital investment arm of Total SE, Total Carbon Neutrality Ventures. In July, Hyzon announced plans for a plant in the Netherlands as part of a joint venture with Holthausen Clean Technology BV. It also has unspecified manufacturing activities with an undisclosed partner in Shanghai and operations elsewhere in Asia and in Australia. In August, Hyzon reached a deal with Australian mining company Fortescue Metals Group Ltd. to build a fleet of hydrogen fuel cell buses.
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