Hyliion (HYLN) 28th Annual Needham Growth Conference Virtual summary

Market and industry trends

• Power generation demand is surging, driven by data centers and industrial users.

• Data center electricity use by hyperscalers is projected to rise from 6 GW in 2025 to 40 GW by 2030.

• Distributed, on-site power generation is expected to become the dominant model, reducing grid dependency.

• The company pivoted from electric vehicles to power generation, leveraging acquired technology.

• Key target markets include data centers, defense, waste gas, EV charging, and commercial/industrial sites.

Technology and product development

• KARNO generator is a modular, fuel-agnostic, linear heat generator based on Stirling engine principles.

• Additive manufacturing (3D printing) enables efficient, low-maintenance, and flexible design.

• The system operates on over 20 fuels, including natural gas, propane, diesel, hydrogen, and ammonia.

• Achieves up to 50% electrical efficiency, surpassing grid and many competitors.

• Surpasses strict emissions standards and is classified as non-regulated by the EPA.

Commercialization and customer adoption

• Over 100 days of continuous operation achieved on a customer-configured unit with no unplanned downtime.

• U.S. Navy is a key early adopter, with successful load profile demonstrations and ongoing contracts.

• Signed non-binding LOIs for nearly 500 units across multiple sectors; demand exceeds current supply.

• UL certification expected by early 2026, enabling broader field deployments.

• Typical payback period for customers is around three years, with a 200 kW unit priced at ~$500,000.