Mario, Michael Andretti teaming up with California hydrogen-fueling project
Famed Lehigh Valley race car driver Mario Andretti and his son Michael are pursuing development of hydrogen fueling for vehicles in California.
The Andrettis’ company, Andretti Group, has entered into an agreement to install hydrogen-fueling spots in 10 of its 39 California stations, according to M.J. Castelo, the group’s CEO. The financial terms were not disclosed.
Castelo said in an email the plan is to install the fueling stations in the fourth quarter of 2021. Mario Andretti referred questions to Castelo.
The deal also involves PowerTap Hydrogen Fueling of Irvine, California, and Clean Power Capital Corp. of Vancouver, British Columbia. Clean Power, a publicly traded company, invests in companies involved in hydrogen and other renewable energy fuel applications, according to its website.
This is the Andrettis’ first foray into alternative fuels for vehicles.
“Well, we’re really excited about it,” Michael Andretti said about hydrogen fueling during a recent interview on Yahoo Finance. “You know, it’s a new technology that PowerTap has come up with where they can actually produce hydrogen on site.
“I think hydrogen makes so much sense in so many different ways ... as an alternative fuel. And, you know, for us, we’re really happy to be on the ground floor of it.”
California has been among the leading states in hydrogen fueling, with the Lehigh Valley owning another connection to hydrogen and the Golden State. Trexlertown Fortune 500 company Air Products last year opened what the company said is the largest hydrogen-fueling station for transit buses in the U.S. in Santa Ana, California.
The market for hydrogen, especially in states like California, is growing as the U.S. energy industry transitions toward green technology and alternative-fuel vehicles.
“We felt our company had to get active in this space, especially since we are in California,” Castelo said. “Hydrogen provides an interesting and sound proposition for vehicle fuel, especially amongst fleets and commercial application.”
Citing the California Fuel Cell Partnership, a recent New York Times story said California had 8,890 electric cars and 48 electric buses running on hydrogen batteries, which are refillable in minutes at any of 42 stations in the state.
A disadvantage to growing the technology has been the lack of fueling stations, partly due to the relatively low number of compatible vehicles, according to media reports. But several international truck manufacturers have announced plans to introduce hydrogen-powered long-haul trucks. Meanwhile passenger cars fueled by hydrogen, such as the Toyota Mirai, are already on the market.
Andretti Group, which the Andrettis and Castelo (a former Texaco executive) started in 1997, sells gasoline, diesel and propane, with more than 100 fuel and convenience stores in Oregon and Washington state besides California. Castelo said the company is acting as a “network developer” for PowerTap’s production and dispensing.
“You can think of this proposition similar to an ATM agreement in our industry,” he said. “The ATM provider owns, installs and maintains equipment, and the retailer earns a revenue share/commission dollars.”
Born in Italy, Mario Andretti came with his family to the Lehigh Valley in the 1950s and settled in Nazareth. Both Andrettis left their mark on racing’s top events, with Mario Andretti, who lives in Bushkill Township, winning the 1969 Indianapolis 500.