Hyliion, Inc., an energy technology company that designs, develops, manufactures and installs hybrid suspension for semi tractors and trailers, intends to move most of its employees to Cedar Park from Verona, Pennsylvania by the end of the year.
The company’s system is estimated to reduce average fuel consumption by 30 percent, and saves over 3,000 gallons of diesel fuel used annually idling at rest stops, Cedar Park Economic Development Director Phil Brewer said. He said the technology also removes CO2 emissions from the air equivalent to 13 cars being taken off the road.
“Specifically, the suspension system uses regenerative breaking to capture power when the trailer is slowing down and then reuses this power to help power the trailer up hills and improve fuel savings,” he said.
Cedar Park’s Economic Development Co. Type A, or 4A, Board recommended approval for an economic development agreement with Hyliion totaling $1.27 million at its meeting Jan. 22. The decision will go to Cedar Park City Council for final consideration.
Brewer said the city is expected to see 15.5-percent return on investment with a 7.6-year payback period.
“All of our agreements are performance-based; this means there is no money that is let loose or distributed until they have met the performance measures,” Brewer said.
He said the terms of the deal require the company to lease no less than 80,000 square feet and create 35 full-time jobs with an annual payroll of $3.1 million by Oct. 31. By October 2022—the fifth and final year of the agreement—the company will have up to 229 full-time equivalents with an annual payroll of $20.6 million. The average annual salary at Hyliion will be $90,000, he said.
The company plans to relocate employees to a temporary location until its Cedar Park facility in Brushy Creek Corporate Center is ready later this year. Hyliion is leasing space at the center, and anticipates a capital investment of $5,750,000 in the project, according to meeting documents.