LIB Libertine Holdings Plc

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

7 February 2024

Libertine Holdings PLC

("Libertine" the "Company" or the "Group")

Libertine announces completion of Phase 1 support and Motion Control API license to Hyliion

Libertine Holdings PLC (LSE AIM: LIB), a developer of Linear Generator technology, today announces the completion of its Phase 1 support for the KARNO™ linear generator with Hyliion Holdings Corp. (NYSE: HYLN, "Hyliion") and the licensing of its Motion Control Application Programming Interface software feature.

Hyliion acquired the KARNO generator technology from GE Additive in August 2022 to employ as a fuel-agnostic power system on its Hypertruck platform, which was revealed as a demonstration vehicle at the Advanced Clean Transportation (ACT) Expo in Anaheim, California, in May 2023. Hyliion changed its strategic focus in October 2023 to concentrate solely on stationary power generation applications using the KARNO linear generator technology.

Hyliion engaged Libertine to support the integration of Libertine's HEXAGEN™ technology platform into the first prototype KARNO linear generator demonstrated in the Hypertruck KARNO vehicle at ACT Expo.  Libertine has completed a series of Statements of Work ("SOW") with Hyliion, pursuant to the Master Consultancy Services Agreement ("MCSA") originally agreed with General Electric Company in August 2021, and novated to Hyliion in September 2022.

On 18 January 2024, Libertine entered into a completion cost agreement ("CCA") with Hyliion on its existing Phase 1 SOWs, in respect of any and all outstanding invoices or monies otherwise due to Libertine. The completion costs under the CCA, once received, are expected to extend Libertine's cash runway through to July 2024. The Company expects to receive such completion costs in February 2024.

On 18 January 2024, the Company also entered into an additional SOW ("January SOW") to provide additional prototype hardware, test data and a license to use Libertine's Motion Control Application Programming Interface software feature. The January SOW supports continued testing of the HEXAGEN linear e-machine and control sub-systems supplied by Libertine and incorporated within Hyliion's current system. Hyliion plans to build production units for the entire linear generator system in-house. Further to the Company's announcement on 19 December 2023, the January SOW (pursuant to the terms of the MCSA) extends the option period that Hyliion has to negotiate IP licensing rights with Libertine to 31 July 2024.

Sam Cockerill, Chief Executive of Libertine, commented: "We are pleased to have completed the Phase 1 statements of work with Hyliion which saw exhibition of their KARNO Hypertruck commercial vehicle demonstrator at the ACT Expo in Anaheim CA in May 2023, and has since enabled a KARNO generator to successfully return power to the grid in Ohio.

"The HEXAGEN platform advances that have been demonstrated on the KARNO generator have led to continued commercial interest in this platform for gas compression and energy storage applications, and form the basis of new intellectual property that underpins both HEXAGEN and intelliGEN platforms.

"Commercial interest in our intelliGEN and HEXAGEN technology platforms remains strong, supported by the technical progress demonstrated in 2023. Prospective customer applications span distributed power generation, heavy-duty vehicles, and gas compression. We are making good progress with a number of OEM and end product customers in the US, Europe, Middle East and India who we anticipate will incorporate our platform technology into their product development and demonstration programmes."

For more information, please visit www.libertine.co.uk or contact:

About Libertine

Founded in 2009, Libertine provides technology platform solutions for Original Equipment Manufacturers ("OEMs"), enabling efficient and clean power generation from renewable fuels, and more effective energy storage devices and gas compressor systems. Libertine was admitted to trading on the AIM market of the London Stock Exchange in December 2021. 

Libertine has created two technology platforms, each using the same core technology elements, which the Company provides to its OEM customers for their development of Linear Generator and Linear Motor products:

-       The intelliGEN™ platform enables the creation of clean, highly efficient and fuel-flexible Linear Generator products including:

•      Heavy-duty hybrid powertrains of trucks, buses, tractors, construction and mining equipment;

•      Medium and light-duty hybrid powertrains of commercial vehicles operating over longer distances;

•      A proportion of the passenger automotive market where vehicle use and recharging constraints are a barrier to battery electrification; and

•      A wide range of off-grid, portable power and distributed power generation applications.

-       The HEXAGEN™ platform enables more effective energy storage, thermal power generation, waste heat recovery and gas compression products including:

•      Stirling Engine power generators and thermal energy storage systems;

•      Linear motor reciprocating compressor (LMRC) systems for hydrogen refuelling stations; and

•      Organic Rankine Cycle waste heat recovery systems.

These two platforms are a result of over a decade of development and performance validation of Libertine's proprietary core technology elements including its linear electrical machines, controls and developer tools.

The potential market for Linear Generator products goes well beyond the distributed power generation applications where Linear Generators are already in commercial use today, complementing intermittent renewable power with clean, on-demand power generation. Linear Generators also have the potential to complement battery electrification in hybrid powertrains, providing on-board power generation to address the practical and economic barriers to rapid adoption of clean electric propulsion using battery electric powertrain technology alone.

Working with OEMs from an early stage in the development cycle ensures Libertine's technology is effectively integrated into OEM products, maximising the performance and economic benefits provided by Libertine's platform technology. Libertine has developed a portfolio of over 30 granted patents in addition to a significant body of technical know-how generated since the Company's formation. The Company's senior management team and board includes executives with decades of deep technical experience in the automotive and energy industries.