Hyliion Holdings Stock Surges After $6M DOE Grant: Retail Sentiment Brightens

The company will install up to 2 megawatts of its KARNO generators in collaboration with oil and gas partners. The project has $8.4 million in federal and non-federal funding.

Hyliion Holdings Corp (HYLN) announced on Monday that the U.S. Department of Energy’s (DOE) Methane Emissions Reduction Program has awarded the firm a $6 million grant. Although the firm's shares surged nearly 6% before the bell, they went into the red at market open.

The company said it will install up to 2 megawatts of its KARNO generators in collaboration with oil and gas partners. The project has $8.4 million in federal and non-federal funding.

The funding is contingent upon the completion of final negotiations and the execution of a definitive agreement with the U.S. DOE, the firm said.

The KARNO generator is a linear generation system powered by heat and enabled by 3D metal printing. It offers flexibility to operate on more than 20 fuel types, including raw field gas.

In November, the firm demonstrated the generator’s fuel-agnostic capabilities that displayed an uninterrupted transition between multiple fuel types during live operation.

The KARNO generator was first tested using natural gas and then adjusted to a nitrogen-rich syngas, following which it operated on various mixtures of natural gas and hydrogen up to a majority hydrogen composition. “Without requiring recalibration or shutdown, the generator was able to adapt to these changes while maintaining power output,” the company stated in an earlier statement.

Following the announcement, retail sentiment on Stocktwits jumped into the ‘bullish’ territory (62/100) from ‘neutral’ a day ago.

Notably, shares of the firm have gained a whopping 221% since the beginning of the year.

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