H2i’s Hydrogen System Cuts Diesel Fuel Use 27%, NoviqTech Tokenises Carbon Credits

Innovative Partnership Targets Carbon Reduction

In a strategic move that blends clean technology with blockchain innovation, NoviqTech (ASX: NVQ) has announced a partnership with H2i Group to develop a pioneering hydrogen-diesel carbon credit project. This collaboration aims to harness H2i’s proprietary Hydrogen Enhancement System to significantly reduce fuel consumption and emissions in diesel engines, while leveraging NoviqTech’s Carbon Central platform to tokenise the resulting carbon credits on the Hedera blockchain.

H2i’s system injects hydrogen into diesel combustion engines, achieving up to a 27% reduction in fuel consumption, a 19% cut in CO2 emissions, and a 44% decrease in particulate emissions. These impressive efficiency gains not only reduce environmental impact but also generate valuable carbon credits that can be traded in voluntary markets.

Digital Twin Technology Enhances Transparency

Central to this initiative is the use of Digital Twin technology integrated into the Carbon Central platform. This enables real-time tracking, validation, and automated calculation of emissions reductions, ensuring transparency and credibility in the tokenisation process. By providing an immutable audit trail and integrating with IoT devices, the platform addresses a key challenge in carbon markets: verifying the authenticity and impact of carbon credits.

H2i’s software captures critical data on hydrogen, diesel, and electricity usage, facilitating precise performance monitoring. This data-driven approach not only supports compliance with voluntary carbon market standards but also positions the project at the forefront of the emerging decentralised carbon economy.

Commercial Momentum and Global Reach

H2i has already demonstrated commercial traction with installations on generators, boats, and trains, and is building a substantial global customer base. The company is targeting a sales pipeline of 100,000 units across multiple regions and has secured significant agreements, including a joint venture in China. Upcoming showcases, supported by ATM-Global, aim to penetrate the truck, bus, and generator sectors, with potential clients such as Saudi Telecom, which operates 20,000 diesel-powered towers.

Financially, the tokenisation service will operate on a tiered pricing model, starting at $0.90 AUD per token for the first 1,000 tokens and decreasing to $0.50 AUD for volumes exceeding 100,000 tokens. While NoviqTech has yet to quantify expected revenues from tokenisation, the scalability of the project and H2i’s expanding commercial volumes suggest significant future potential.

Strategic Implications and Industry Impact

Freddy El Turk, CEO of NoviqTech, emphasised the partnership’s potential to unlock new opportunities in the carbon credit market through real-time emissions reductions. Meanwhile, H2i Chairman David Vinson highlighted the collaboration’s role in advancing industrial emissions reduction and contributing to global sustainability goals.

This project exemplifies how clean technology innovation, combined with blockchain-enabled transparency, can create new pathways for carbon reduction and commercialisation. As regulatory and voluntary carbon markets evolve, such initiatives may set benchmarks for credibility and efficiency in emissions trading.