Why did you leave your Master’s program at Carnegie Mellon to start Hyliion in 2015, and what motivated you to enter the electric trucking space?
Entrepreneurship has always been my focus. During my undergraduate years, I started two companies—one in sales and another focused on concussion research—so I knew I wanted to build something from scratch. While I was in grad school, the automotive industry was shifting towards electrification. Tesla was gaining significant traction, but no one was addressing the electric semi-truck market. That gap presented an exciting opportunity. Trucking is a major source of emissions, and almost everything you see around you has been transported by a truck at some point. We realized that electric trucks could have a massive environmental impact by reducing emissions. That vision helped us secure hundreds of millions in funding and go public in 2020, during the peak of excitement in the electric vehicle market.
What were the biggest challenges in pivoting from electric vehicles to power generation, and how did the company manage that transition?
The decision to pivot from electric vehicles to power generation was incredibly difficult. We had extensive discussions with the board, brought in external consultants, and carefully evaluated our options. Ultimately, we had to dramatically reduce our workforce and cut our annual spending from $150 million to $50 million. Fortunately, we had $300 million in cash reserves, which gave us the financial stability to execute this shift. Many companies in the electric vehicle space were going bankrupt or struggling to raise capital. The market was not developing as expected, and we realized that staying on the same path was not sustainable. Although restructuring the company was a painful process, we believed that pivoting to power generation would position us for long-term growth. If we had stayed focused on electric vehicles, we might not have survived.
How does Hyliion’s technology address the power challenges faced by data centers and EV charging networks?
Data centers are experiencing explosive growth in power demand. Some hyperscalers like Amazon and Microsoft expect to increase their power needs by over 5 times their current usage by 2030. This can be equivalent of 40 nuclear plants per hyperscaler, and the grid simply cannot keep up with that demand. As a result, many companies are turning to on-site power generation.
Our generators, which are designed to connect to natural gas pipelines, will provide a reliable and immediate power solution. The same challenge applies to EV charging networks, where operators often face delays of three to five years to connect to the grid. We expect our fuel-agnostic generators to allow companies to start operations immediately by running on natural gas, propane, or other fuels. As cleaner energy sources like hydrogen become more available, operators can switch seamlessly, making our technology both flexible and future-proof.
What makes Hyliion’s power generation technology unique compared to traditional generators?
Our generators are designed to operate like small power plants rather than traditional backup generators. Once released in the market, we expect our generators tot offer the high efficiency of a large power station but with minimal noise, low maintenance, and fuel flexibility. Traditional generators are often noisy, require frequent maintenance, and are only used during emergencies. In contrast, our system is designed to run continuously and efficiently. This will make on-site power generation practical for a wide range of businesses. With the increasing frequency of rolling blackouts and grid constraints, companies need reliable power sources. Our technology offers a real solution by enabling them to generate electricity locally, reducing their reliance on the grid while also saving on energy costs.
What industries are you focusing on for the initial deployment of your generators, and why?
We expect our first units to be deployed for EV charging, at landfills, and in the oil & gas sector where gases are often flared off as waste. Our generators can use captured gas and convert it into electricity, showcasing the versatility of our fuel-agnostic technology. This is an excellent way to demonstrate how waste can be transformed into energy. From there, we plan to expand into data centers, which are facing urgent power needs. These operators are not just interested in lowering costs—they need reliable power immediately. The grid cannot meet their demand, so they are turning to on-site generation. We believe this is the right market to target initially, as it aligns perfectly with the strengths of our technology.
How is additive manufacturing helping Hyliion develop advanced power generation technology?
Additive manufacturing, or 3D printing, has been a key enabler for us. Our generator is based on the Stirling engine, a 200-year-old concept that NASA revisited in the 1980s. While the design was promising, manufacturing limitations at the time prevented it from being fully realized. With modern 3D printing, we can now create high-efficiency heat exchangers and other components that were impossible to manufacture before. This allows us to produce compact generators capable of power plant-level performance. As we scale production, we will expand our in-house 3D printing capabilities. The ability to integrate advanced manufacturing with time-tested engineering concepts gives us a unique advantage in the power generation market.
What response have you seen from customers as they shift towards on-site power generation?
Over the past year, we have seen a significant change in customer attitudes. Initially, many hyperscalers believed the grid would eventually meet their needs. However, the reality of rolling blackouts and long delays for grid access has forced them to rethink their strategies. Today, on-site generation is not just a convenience—it is essential for ensuring uninterrupted operations. This shift represents a fundamental change from the traditional grid model, which relies on large, centralized power plants. Businesses are starting to understand the value of generating power locally, which offers reliability, flexibility, and cost savings. The interest we are receiving confirms that this change is happening across industries.
How competitive is Hyliion’s pricing, and what value does it offer compared to traditional energy sources?
While we have not disclosed specific pricing, we expect our solution to be positioned between traditional natural gas engines and fuel cells. A typical natural gas engine costs around $1,000 to $1,500 per kilowatt, while fuel cells can reach $3,500 per kilowatt. Our goal is to provide a three-year payback, making our electricity cheaper than what customers would buy from the grid.
In high-cost regions like California who implement peak rates, the payback period can be as short as one year. Even in areas with lower electricity prices, such as Florida, businesses see long-term savings by generating their own power. Our combination of efficiency, flexibility, and affordability makes our solution an attractive option for a wide range of industries.
What are the biggest challenges you foresee as you scale Hyliion’s operations?
One of the biggest challenges is executing successful deployments. The world is accustomed to relying on the grid for power, but with increasing blackouts and grid failures, companies need to adopt new ways of generating electricity. Shifting to on-site power generation requires a change in mindset, which can be a hurdle. To meet demand, we need to scale our manufacturing, streamline distribution, and expand our 3D printing capabilities to reduce costs. As Elon Musk once said, building a prototype is easy, but commercializing it is the hard part. We believe that decentralized power will become the new standard as industries demand reliable, affordable electricity to fuel their operations.
