Shruti Gautam
TLDR:
- Hyliion Holdings pivoted to energy distribution with the Karno generator after winding down its powertrain business.
- The Karno technology, acquired from GE, qualifies for incentives and can be used for various applications, potentially attracting buyers like Cummins Inc.
In a move to secure a second chance after its powertrain segment wind-down, Hyliion Holdings made progress in its pivot to energy distribution by acquiring the Karno generator from GE. The Karno generator, more expensive than diesel but cheaper than a fuel cell, has attracted interest from potential customers. The company, armed with financial discipline and capital from its reverse merger, plans to invest $40 million in Karno development this year and expects to see revenue and a path to gross margin soon.
With potential applications ranging from electric truck infrastructure to providing backup power for data centers, the Karno technology could pose a competitive threat to legacy players like Cummins. Cummins, with its presence on Hyliion’s board and solid track record in power generation, could be a potential acquirer. However, Hyliion remains focused on developing Karno and proving its reliability before seeking buyers in a highly volatile market.
