The partnership, which includes commercial logistics provider PACC Services, addresses the logistical hurdles of transitioning to fuel cell electric buses. Under the agreement, ZeroUp will utilize hydrogen generated during K2’s chlor-alkali manufacturing process. This production method is significant because it avoids the need for natural gas reforming or additional electrolysis, creating a low-carbon fuel source that aligns with the California Innovative Clean Transit (ICT) regulation.

For agencies like the Stanislaus Regional Transit Authority and Omnitrans in San Bernardino, the deal provides a reliable, locally sourced fuel supply. ZeroUp Energy, which brings over a decade of experience in hydrogen station operations, will manage the mobile fueling deployments. K2 is expected to begin commercial availability in the third quarter of 2026, with PACC Services overseeing the supply chain and logistics. This collaboration is designed to scale as more transit fleets across Northern and Southern California move away from traditional combustion engines to comply with state environmental requirements.