Equity Method Investments

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

Raven SR S1 LLC

In December 2022, the Company, via its subsidiary, Hyzon Zero Carbon, Inc. (“HZCI”), entered into an agreement with Chevron and Raven, to invest in Raven SR S1 LLC (“Raven S1”). Raven S1 intends to develop, construct, operate and maintain a solid waste-to hydrogen generation production facility located in Richmond, California (the “Richmond Project”). The Company invested $8.5 million at closing, and the remaining $1.5 million is scheduled to be paid upon when construction of the facility is at least 50% complete and pre-commissioning activities have been initiated. The total $10.0 million investment represents approximately 20% ownership of Raven S1.

The Company’s equity method investment in Raven S1 does not have a readily determinable fair value. Such investments are evaluated for impairment when events and conditions occur that may have a significant adverse effect on the investment's fair value.

Although Raven and Raven S1 continue to seek additional sources of capital needed to fund their business activities, the Richmond Project has lacked sufficient funding for more than one year. The prospects of successfully attracting sufficient capital or obtaining the required permits and insurance to complete the Richmond Project remains uncertain. Based on these factors, along with uncertainty about Hyzon’s ability to realize any value on disposition of the investment or to hold its investment for a period of time sufficient to allow for the completion of the Richmond Project and therefore any recovery of its investment , the Company determined that the investment was fully impaired and that such impairment was other than temporary as of September 30, 2024. Accordingly, the Company recognized an $8.4 million impairment on its equity method investment within Impairment of investments in the unaudited interim Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2024.