Sustainable Development Goals
Organizations Involved:
Klean Industries, Klean Loop, CEVA, Nikola Corporation, Enapter, H2 Core Systems, Plug Power, Infrastructure Debt Funders, Various Tire Recyclers & Haulers
Services:
Feasibility Studies, Due Diligence, Supply Chain Management, Carbon Management, CSR Education Plan
The Challenge
In 2021, we worked with investors such as infrastructure debt funds, among many other investors, to finance one of Klean Industries's facilities in the United States. During our discussions, a simple but poignant question was asked, "What is Klean Industries doing about emissions associated with inbound end-of-life tire feedstock and outbound product logistics at our facilities? Was there a better way, and what was our plan for the future? We had not given much thought to it then because little technology was available to deliver a reliable commercial solution. However, in typical Klean Industries fashion, we didn't stop thinking about it; we started doing something about it, and in this case study, you learn what we did about it.
The transportation sector is California and Oregon's most significant contributor to greenhouse gas (GHG) emissions. California accounts for approximately 40% of total emissions, with heavy-duty (HD) trucking responsible for 21% of these emissions and 26% of statewide oxides of nitrogen (NOx) emissions, a major contributor to air pollution. Similarly, in Oregon, transportation generates 35% of total emissions and consumes 36.7% of all energy, with 91% derived from petroleum-based fuels.
California and Oregon have set ambitious decarbonization goals—California aims for carbon neutrality by 2045, while Oregon targets an 80% reduction in GHG emissions below 1990 levels by 2050. Both states have implemented aggressive policies to achieve these objectives, including California’s Advanced Clean Trucks (ACT) and Advanced Clean Fleets (ACF) regulations and Oregon’s Clean Fuels Program. However, traditional diesel-powered logistics remain a significant obstacle to meeting these targets.
While battery-electric trucks show promise, they face critical barriers such as limited range, long charging times, and heavy battery weight, which reduces payload capacity. Hydrogen fuel cell technology presents a compelling alternative, offering zero emissions, rapid refueling, and sufficient power for heavy-duty applications.
The Solution
Klean Industries, in collaboration with Nikola Corporation, Enapter, H2 Core Systems, and Plug Power, is pioneering a hydrogen-powered supply chain for end-of-life (EOL) tire collection and recycling. By deploying Nikola Tre Fuel Cell Electric Class 8 trucks, Klean ensures that scrap tires are sustainably transported to its pyrolysis facilities in California and Oregon while eliminating diesel emissions from the logistics process. As a compliment to the design work, all Klean facilities will co-produce green hydrogen with hydrogen refueling on-site combined with a network of strategically located refueling sites across the West Coast of the United States to move products inbound and outbound.
With a range of up to 500 miles per refuel and emissions limited to water vapor, these fuel cell trucks offer a viable and scalable alternative to diesel. Incentives such as California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) and Oregon’s Clean Fuels Program further accelerate adoption by offsetting initial costs. Hydrogen refueling stations are strategically placed along key transport corridors to enable seamless operations, ensuring uninterrupted fleet operations.
By leveraging hydrogen-powered logistics, Klean Industries is redefining circular economy principles—transforming waste into valuable commodities while eliminating carbon-intensive transport emissions.
The Outcome
Environmental Impact: Each Nikola Tre Fuel Cell Electric Truck prevents approximately 100 metric tons of CO2 emissions annually, equivalent to removing 216 passenger vehicles from the road per truck. A fleet of 10 trucks cuts 1,000 metric tons of CO2 emissions annually. Additionally, eliminating NOx and particulate matter (PM) emissions improves air quality in industrial and urban regions, reducing public health risks associated with diesel pollution.
Operational Efficiency: With a 500-mile range and refueling times under 15 minutes, hydrogen fuel cell trucks match diesel efficiency while delivering zero emissions. Their high torque and rapid acceleration make them ideal for frequent stop-and-go transport, ensuring seamless logistics without sacrificing performance.
Scalability and Market Expansion: This initiative showcases the viability of hydrogen fuel cell technology in heavy-duty transport. As hydrogen infrastructure expands, applications extend beyond tire recycling to freight logistics, industrial transport, and public transit. With growing regulatory support and decreasing hydrogen production costs, widespread adoption is on the horizon.
Economic and Social Benefits: The hydrogen economy is projected to generate substantial economic opportunities. In California alone, the sector is expected to contribute $2.5 billion in revenue and create over 100,000 jobs by 2030. Investments in hydrogen production, refueling networks, and vehicle manufacturing are driving job creation and positioning the region as a leader in clean transportation.
Incentives Driving the Transition to Fuel Cell Trucks: Businesses transitioning to fuel cell trucks can leverage a range of incentives. The federal Inflation Reduction Act (IRA) provides tax credits for hydrogen production and fuel cell vehicle adoption. State programs such as California’s HVIP and Oregon’s Clean Fuels Program offer direct financial incentives to accelerate deployment, making the transition financially viable.
Market Dynamics and Future Outlook: The hydrogen transport market is expanding rapidly. Renewable hydrogen production costs are expected to surpass fossil-derived hydrogen by 2025, making it a cost-competitive alternative. Key applications include:
Conclusion
Klean Industries’ hydrogen-powered EOL tire recycling initiative transforms heavy-duty transportation and waste management. By integrating hydrogen fuel cell technology, this project eliminates emissions from logistics, creating a model for sustainable supply chains. As infrastructure expands and costs decline, fuel cell trucks will become even more viable across multiple industries.
By leading this transition, Klean Industries and its strategic partners are setting a new benchmark for clean transportation, proving that hydrogen is key to the future of zero-emission logistics.
If you would like to learn more about this project, please get in touch with us now >> GO.
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