Hyzon Motors Shares Jump On Chevron Agreement: What's Going On?

Hyzon Motors Inc HYZN shares are trading higher Thursday after the company entered into an agreement with Chevron Corp's CVX Chevron New Energies and Raven SR.

What Happened: According to a new regulatory filing, Hyzon entered into an equity capital contribution agreement in which Hyzon Zero Carbon and Chevron New Energies, a division of Chevron's U.S. business, agreed to invest in Raven SR S1 LLC, a subsidiary of Raven.

The Raven LLC will develop, construct, operate and maintain a solid waste-to-hydrogen generation production facility located in Richmond, California.

Hyzon Zero Carbon agreed to invest $10 million for approximately 20% ownership in the company. Hyzon invested $8.5 million at closing on Dec. 21. The remaining $1.5 million is expected to be paid in 2023. 

Hyzon assembles and supplies hydrogen fuel cell-powered commercial vehicles across North America, Europe and China. The company is expected to report its quarterly financial results in mid-January.

See Also: Exxon Mobil Sues European Union In Efforts To Scrap New Windfall Tax On Oil Firms

HYZN Price Action: Hyzon has a 52-week high of $7.18 and a 52-week low of $1.37.

Hyzon shares are up 5.71% at $1.48 Thursday morning, according to Benzinga Pro.

Photo: courtesy of Hyzon.