NoviqTech and HYDI partner to generate carbon credits from hydrogen-on-demand for diesel engines

NoviqTech (ASX: NVQ) has announced a project partnership with HYDI Hydrogen to enable the generation of carbon credits from HYDI’s hydrogen-on-demand systems for diesel engines.

The four-phase agreement will leverage NoviqTech’s Carbon Central platform to support end-to-end carbon credit issuance using blockchain-backed data tracking and digital twins.

It will involve environmental assessment, data mapping and registry engagement, digital twin design and device integration, pilot testing and methodology validation with simulated token issuance and a ‘go-live’ phase with live carbon tracking and registry-recognised credit generation.

Real-time monitoring

Carbon Central will integrate with HYDI’s Internet of Things (IoT)-enabled devices for real-time reporting and verification compliance, measurement, emissions monitoring and automated tokenisation.

The initiative positions HYDI for scalable and recurring revenue through carbon credit generation, with a potential 8,000 litres of diesel avoided per month for a typical diesel truck mining application.

This will save approximately 2.7 kilograms of carbon dioxide equivalent per litre of direct greenhouse gas emissions.

Terms of the deal

NoviqTech will conduct environmental and data assessments to align HYDI’s deployments with recognised carbon credit methodologies and design and deploy a digital twin and emissions tracking system using the Carbon Central platform.

The company will support project registration, data validation, token issuance and reporting for third-party audits and registry compliance, to enable registry-ready, blockchain-verified credits through the Hedera platform with a secure and auditable lifecycle for each token.

HYDI will access Carbon Central on a monthly subscription basis – utilising NoviqTech’s enterprise-tier pricing category of $4,500 per month (discounted to $1,000 per month for the first six months) – and once operational, a per-token fee will apply.

The companies are yet to confirm final pricing tiers or tokenisation volumes and will reset token volumes each month.

Verifiable benefits

NoviqTech chief executive officer Freddy El Turk said the partnership would deliver real and verifiable environmental benefits.

“This collaboration enables scalable new revenue streams by delivering integrated platform solutions, technical advisory and carbon credit management for HYDI,” he said.

“It advances real-time emissions reductions and exemplifies our commitment to driving environmental impact, sustainable business growth and emissions reduction at scale.”

Hydrogen-on-demand system

HYDI’s hydrogen-on-demand system injects hydrogen gas into the air intake of diesel engines to enhance combustion efficiency.

It installs easily onto existing engines and uses only distilled water and low-voltage electricity to generate hydrogen during operation without the need for storage, chemicals or additives.

This leads to fuel savings and significant emissions reductions, positioning the technology as a strong candidate for carbon credit generation.

HYDI’s technology supports operators in sectors such as transport, mining and agriculture in cutting costs and carbon without replacing equipment.