Cummins to Form Joint Venture With NPROXX for Hydrogen Storage

June 23, 2020

COLUMBUS, Ind.–(BUSINESS WIRE)–Cummins Inc. (NYSE: CMI), a global technology and power solutions leader, today announced an agreement to form a joint venture with NPROXX, a leader in hydrogen storage and transportation, for hydrogen storage tanks. The joint venture will continue under the name NPROXX.

“We are thrilled to combine Cummins’ expertise, innovation and commitment to customer success with NPROXX’s leading hydrogen storage technologies,” said Tom Linebarger, Chairman and CEO, Cummins Inc. “In order to move toward a decarbonized future, the world will require multiple power solutions including advanced diesel, natural gas, electrified power, fuel cells, hybrids and other solutions and Cummins is committed to leading the way and being the provider of choice. The addition of hydrogen storage to our existing capabilities in hydrogen production and fuel cells enables us to accelerate the viability and adoption of these technologies in commercial markets.”

The joint venture will provide customers with hydrogen and compressed natural gas storage products for both on-highway and rail applications. The joint venture adds to Cummins rapidly growing hydrogen capabilities and is one of several actions taken in the past year to deepen the company’s capabilities in fuel cell and hydrogen production technologies.

The acquisition of Hydrogenics Corporation in September 2019, provided Cummins with both proton exchange membrane (PEM), and alkaline fuel cells electrolyzers to generate hydrogen. Cummins has also invested in LOOP Energy, signed a memo of understanding with Hyundai Motor Company and invested in the development of solid oxide fuel cells.

“Cummins has more than 2,000 fuel cell installations across a variety of on and off highway applications as well as more than 500 electrolyzer installations,” Linebarger continued. “We continue to increase our capabilities in fuel cell technologies, and this partnership with NPROXX is another step forward. We look forward to partnering closely with NPROXX’s team as we work towards closing this transaction.”

“The NPROXX team is eager to work with Cummins to deliver industry-leading hydrogen storage options,” said Rainer vor dem Esche, Managing Director, NPROXX. “Partnering with Cummins to provide reliable hydrogen storage options will allow our customers to unlock the potential for hydrogen.”

Cummins and NPROXX will each own 50 percent of the new joint venture. The formation of the joint venture is subject to regulatory approvals and customary closing conditions. The parties expect the transaction to close by the end of the first quarter of 2021. The unconsolidated joint venture results will be included as part of Cummins’ New Power business segment.

About Cummins Inc.

Cummins Inc., a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, batteries, electrified power systems, hydrogen generation and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 61,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $2.3 billion on sales of $23.6 billion in 2019. See how Cummins is powering a world that’s always on by accessing news releases and more information at https://www.cummins.com/always-on.

About NPROXX

NPROXX is a global leader in designing, developing and manufacturing Type 4 pressure vessels for the storage of hydrogen under high pressure. Based on 40 years experience in carbon-fibre-reinforced polymer (CFRP) products and systems in various industries NPROXX provides composite tank systems and tailor made solutions for hydrogen storage applications: Transport and storage (500 bar, 950 bar), Heavy duty vehicles, busses and ships (350 bar), Automotive (700 bar). More information can be found on our news and case studies page at https://www.nproxx.com/news-and-case-studies/.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: market slowdown due to the impacts from COVID-19 pandemic, other public health crises, epidemics or pandemics; impacts to manufacturing and supply chain abilities from an extended shutdown or disruption of our operations due to the COVID-19 pandemic; supply shortages and supplier financial risk, particularly from any of our single-sourced suppliers, including suppliers that may be impacted by the COVID-19 pandemic; aligning our capacity and production with our demand, including impacts of COVID-19; a major customer experiencing financial distress, particularly related to the COVID-19 pandemic; any adverse results of our internal review into our emissions certification process and compliance with emission standards; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; disruptions in global credit and financial markets as the result of the COVID-19 pandemic; adverse impacts from government actions to stabilize credit markets and financial institutions and other industries; product recalls; the development of new technologies that reduce demand for our current products and services; policy changes in international trade; a slowdown in infrastructure development and/or depressed commodity prices; the U.K.’s decision to end its membership in the European Union (EU); labor relations or work stoppages; reliance on our executive leadership team and other key personnel; lower than expected acceptance of new or existing products or services; changes in the engine outsourcing practices of significant customers; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; exposure to potential security breaches or other disruptions to our information technology systems and data security; challenges or unexpected costs in completing cost reduction actions and restructuring initiatives; failure to realize expected results from our investment in Eaton Cummins Automated Transmission Technologies joint venture; political, economic and other risks from operations in numerous countries; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; foreign currency exchange rate changes; variability in material and commodity costs; the actions of, and income from, joint ventures and other investees that we do not directly control; changes in taxation; global legal and ethical compliance costs and risks; product liability claims; increasingly stringent environmental laws and regulations; the performance of our pension plan assets and volatility of discount rates, particularly those related to the sustained slowdown of the global economy due to the COVID-19 pandemic; future bans or limitations on the use of diesel-powered products; the price and availability of energy; our sales mix of products; protection and validity of our patent and other intellectual property rights; the outcome of pending and future litigation and governmental proceedings; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2019 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.