Hyliion Receives EPA Confirmation on KARNO™ Power Module Regulatory Pathway
Hyliion Holdings Corp. (NYSE:HYLN), a developer of innovative electricity-producing technology, today announced that the United States Environmental Protection Agency (EPA) has issued a determination confirming that Hyliion's KARNO™ Power Module is not regulated as an internal combustion engine under existing federal law and regulations. Instead, the KARNO Power Module will primarily be subject to local air permitting requirements applicable to power generation installations.
In a recent announcement, the EPA stated that the agency "is getting out of the way of new, innovative technology that will strengthen economic, national, and energy security. These generators have the ability to power data centers, the electric grid, and military installations. As these generators fall outside the scope of EPA's engine standards, they can be deployed without triggering additional permitting requirements."
The EPA's determination acknowledges the fundamentally different and innovative design of the KARNO Power Module and provides a clear pathway for its deployment across both stationary and mobile power generation markets. This determination along with low emission performance of KARNO technology ensures effective regulatory compliance and a more efficient permitting process for customers adopting the technology.
"Hyliion is appreciative of the EPA's determination as it marks an important step in the commercialization journey of the KARNO Power Module," said Thomas Healy, Founder and CEO of Hyliion. "This clarity allows us to accelerate deployment of a solution that is versatile, reliable, and fuel-flexible, helping power the industries of tomorrow, from data centers to defense, while creating jobs here in America."
The KARNO Power Module is a fuel-agnostic linear generator capable of operating on more than 20 fuels, including natural gas, hydrogen, ammonia, renewable gases, and conventional liquid fuels. This unique versatility allows the KARNO Power Module to serve a wide range of critical applications such as defense installations, data centers, industrial facilities, and transportation hubs where reliable and cost-effective onsite power is increasingly essential.
Powered by heat and enabled by advanced 3D metal additive manufacturing, the KARNO Power Module offers breakthrough performance while expected to meet the most stringent emissions requirements in the United States, including the standards set by the South Coast Air Quality Management District's Rule 1110.3 for Linear Generators.
About Hyliion
Hyliion is committed to creating innovative solutions that enable reliable, flexible and affordable electricity production. The Company's primary focus is to provide modular power plants that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, Ohio, Hyliion is initially targeting the defense, commercial and waste management industries with locally deployable KARNO Power Modules that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine. The KARNO Power Module is a fuel-agnostic solution, enabled by additive manufacturing, that leverages a linear heat generator architecture. The Company aims to offer innovative, yet practical solutions that contribute positively to the growing demands of the energy economy. For further information, please visit www.hyliion.com.
Forward Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage company with a history of losses, and our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business; our ability to comply with governmental regulations related to defense spending and procurement; the suitability of our products for defense applications; and the other risks and uncertainties described under the heading "Risk Factors" in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 25, 2025 for the year ended December 31, 2024 and in our subsequently filed Forms 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion's operations and projections can be found in its filings with the SEC. Hyliion's SEC Filings are available publicly on the SEC's website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.
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