Risks and Rewards: Can Hydrogen-On-Demand Tech Deliver Scalable Carbon Credits?
NoviqTech partners with HYDI to generate blockchain-backed carbon credits from hydrogen-on-demand diesel technology, aiming to reduce emissions and create new revenue streams.
- Partnership to generate carbon credits from HYDI’s hydrogen-on-demand diesel systems
- Use of NoviqTech’s Carbon Central platform for blockchain-based emissions tracking and credit issuance
- HYDI’s technology reduces diesel fuel use and greenhouse gas emissions in mining and heavy haulage
- Phased project rollout including environmental assessments, digital twin integration, and pilot testing
- New revenue model for both companies through carbon credit tokenisation and platform licensing
Innovating Carbon Credit Generation
In a strategic move that blends clean technology with blockchain innovation, NoviqTech (ASX – NVQ) has announced a partnership with HYDI to enable the generation of carbon credits from HYDI’s hydrogen-on-demand systems for diesel engines. This collaboration leverages NoviqTech’s Carbon Central platform, which integrates real-time emissions monitoring with blockchain-backed data tracking and digital twins, to create a transparent and verifiable carbon credit issuance process.
Technology Driving Emissions Reduction
HYDI’s hydrogen direct input injection system enhances diesel engine combustion by injecting hydrogen gas into the air intake, resulting in significant reductions in greenhouse gas emissions and fuel consumption. With over 450 units already deployed primarily in mining heavy haulage, drill rigs, and generators, HYDI’s technology is positioned to deliver measurable environmental benefits. The company estimates that a typical diesel truck application can avoid up to 8,000 litres of diesel monthly, translating to a reduction of approximately 2.7 kilograms of CO2 equivalent per litre.
Phased Approach to Market Readiness
The partnership will unfold in four phases, beginning with environmental assessments and data mapping to align with recognised carbon credit standards such as Verra’s Verified Carbon Standard. Subsequent phases include the design and integration of digital twins with HYDI’s IoT-enabled devices, pilot testing with simulated token issuance, and finally, live carbon tracking with registry-recognised credit generation. This structured rollout aims to ensure compliance, accuracy, and scalability in carbon credit production.
Commercial and Environmental Synergies
For NoviqTech, this initiative represents an expansion of its enterprise services model, combining software licensing, integration, and carbon advisory services into a new revenue stream. HYDI benefits by transforming its emissions reductions into tradable carbon credits, unlocking additional value for itself and its customers. Both companies emphasise the importance of robust customer agreements to prevent double counting and clearly define credit ownership and revenue sharing.
Looking Ahead
As voluntary carbon markets increasingly demand transparency and digital verification, the NoviqTech-HYDI partnership is well-positioned to capitalize on these trends. The integration of blockchain technology with real-time emissions data could set a new standard for carbon credit generation, potentially accelerating the adoption of hydrogen-on-demand solutions across sectors reliant on diesel engines.
Bottom Line?
This partnership could redefine carbon credit generation, blending clean tech with blockchain to unlock new value streams.
Questions in the middle?
- What are the projected volumes and revenues from carbon credit tokenisation once commercial metrics are confirmed?
- How will the partnership navigate regulatory changes in voluntary carbon markets and evolving standards?
- Can this model be scaled beyond mining and heavy haulage to other diesel-dependent industries?
