Hyliion and Alkhorayef Sign Strategic $1 Billion MOU at Saudi–U.S. Investment Forum Amid U.S. Presidential Visit, Advancing Clean Energy Collaboration
In a significant move toward strengthening bilateral industrial partnerships and accelerating clean energy innovation, Hyliion Holdings Corp. (NYSE American: HYLN), a U.S.-based energy technology company, and Alkhorayef Industries Company, a major Saudi Arabian industrial conglomerate, jointly announced the signing of a strategic memorandum of understanding (MOU) during the high-profile Saudi–U.S. Investment Forum 2025 in Riyadh. The agreement outlines a collaborative pathway to deploy and scale Hyliion’s KARNOTM Power Module in the Saudi market, marking the start of a potentially $1 billion business opportunity in the Kingdom’s rapidly evolving energy sector.
The investment forum was convened in conjunction with the state visit of former U.S. President Donald J. Trump, drawing senior-level representation from both nations’ public and private sectors. A total of $600 billion worth of investment commitments were made during the event, showcasing the robust and growing economic ties between Saudi Arabia and the United States.
One of the standout moments of the forum was the announcement of the Hyliion–Alkhorayef MOU, which builds on both countries’ mutual interests in pioneering innovative, clean, and decentralized power technologies. The initiative also closely aligns with Saudi Arabia’s Vision 2030, an ambitious national transformation program designed to diversify the Kingdom’s economy and reduce its dependence on oil.
KARNO Power Module: A New Frontier in Clean Energy
At the heart of this partnership is the KARNO Power Module, an advanced energy solution developed by Hyliion that promises high efficiency, low emissions, and compatibility with a broad range of fuels, including renewable options such as hydrogen and ammonia. Unlike traditional generators or internal combustion engines, the KARNO system operates on a solid-state heat engine platform, offering robust performance with fewer moving parts, lower maintenance requirements, and minimal environmental impact.
Designed to be fuel-agnostic, the KARNO module is engineered to thrive in decentralized energy applications, industrial power systems, and grid resiliency efforts—particularly in regions facing extreme environmental conditions such as high ambient temperatures, variable altitudes, and challenging fuel availability. These features make it ideally suited for Saudi Arabia’s unique energy landscape, which includes both remote desert communities and fast-growing industrial hubs.
Strategic Collaboration for Localization and Deployment
The newly signed MOU formalizes Hyliion and Alkhorayef Industries’ commitment to jointly validate, adapt, assemble, and deploy KARNO Power Modules in Saudi Arabia. This strategic collaboration follows a Letter of Intent (LOI) the companies signed in December 2024, advancing their relationship from preliminary discussions to implementation planning.
Under the framework of the MOU, the companies will pursue several key objectives:
- Field validation of KARNO modules in Saudi Arabia: In 2026, two KARNO Power Modules will be installed and tested across different environmental and operating conditions in the Kingdom. The goal is to assess performance under local climate stressors, such as high temperatures and dust exposure, and optimize for local fuel types and elevated terrains.
- Adaptation to regional energy needs: The project will emphasize fuel versatility, including the ability to operate on liquefied petroleum gas (LPG), hydrogen, ammonia, and other non-traditional fuels. This flexibility will help position KARNO as a tool for energy diversification and decarbonization.
- Scaling local assembly and supply chains: The partners will explore the development of local manufacturing and assembly capabilities to meet growing demand. This includes evaluating partnerships with Saudi industrial suppliers and logistics firms, ensuring that deployment is both scalable and aligned with the Kingdom’s industrial localization goals.
Execution of the KARNO deployment plan in Saudi Arabia will be spearheaded by GulfPower, the power systems division of Alkhorayef Industries Company. GulfPower will play a central role in project management, technical compliance, and regional alignment. This includes ensuring that the technology adheres to Saudi grid connection standards, MEWA environmental regulations, and Saudi Electricity Company (SEC) performance expectations.
Shared Vision for Energy Sustainability
The partnership between Hyliion and Alkhorayef exemplifies how U.S.–Saudi cooperation can lead to groundbreaking advancements in sustainable infrastructure and energy reliability.
Thomas Healy, Founder and CEO of Hyliion, emphasized the global significance of the agreement, stating:
“This MOU reflects the power of U.S.–Saudi collaboration and the importance of American innovation on the global stage. We’re proud to work with Alkhorayef to bring cutting-edge energy solutions to the Kingdom.”
Healy further noted that Hyliion’s mission is centered on delivering energy freedom, a goal well-matched to Saudi Arabia’s strategic pivot toward advanced energy systems that support economic resilience and environmental sustainability.
Mohammed Alkhorayef, CEO of Alkhorayef Group, echoed this sentiment:
“At Alkhorayef Industries, we are committed to advancing sustainable technologies that drive progress across industries and communities. Hyliion’s KARNO Power Module represents a significant leap forward in clean power generation. Through this partnership, we are proud to contribute to Saudi Arabia’s clean energy transformation and deliver solutions that align with the goals of Vision 2030.”
Supporting the Goals of Vision 2030
Saudi Arabia’s Vision 2030 blueprint includes a sweeping agenda to modernize the country’s infrastructure, diversify its economy, and position the Kingdom as a global hub for clean energy and advanced technologies. The national strategy includes aggressive targets for renewable energy adoption, carbon emissions reduction, and technological innovation.
As Saudi Arabia increases its investments in distributed energy systems, smart grids, and hydrogen development, technologies like Hyliion’s KARNO become central to the vision. The system’s modular architecture and ability to operate independently of large centralized grids make it ideal for rural and industrial applications—where reliability, energy security, and sustainability are essential.
Moreover, with Saudi Arabia’s hydrogen economy poised for growth, the KARNO module’s ability to utilize green hydrogen and ammonia as primary fuels offers a significant strategic advantage.
Next Steps and Long-Term Outlook
Following the signing of the MOU, Hyliion and Alkhorayef Industries will begin preparations for field deployment and performance trials in 2026. These initial pilots will provide critical data for regional optimization and will lay the groundwork for future commercial-scale deployments.
While the MOU and preceding LOI are non-binding agreements and subject to final contract negotiation, both companies have expressed confidence in their shared commitment to advance the partnership into a full-scale collaboration. The ultimate goal is to deliver a scalable, high-impact energy platform that benefits both the Kingdom’s development ambitions and Hyliion’s international growth strategy.
