Hyliion (NYSE:HYLN) stock is up more than 3% today after purchasing a “hydrogen and fuel agnostic capable generator” from General Electric (NYSE:GE). The company estimates the KARNO generator to be 20% more efficient than competitors.

This morning, Hyliion announced its acquisition of the KARNO generator, a product of 3D printing thermal components for fuel to electricity conversion. The device will be compatible with more than 20 types of fuel, including hydrogen, with greatly improved emissions efficiency.

Thomas Healy, founder and CEO of Hyliion, commented on the competitive advantage KARNO offers.

Solving climate change, whether through adopting electric vehicles or reducing emissions from manufacturing sites, requires clean, efficient and dependable electricity. Hyliion will leverage the KARNO as the next generation generator onboard the Hypertruck, creating a solution that will operate on various fuel sources that are available today, while remaining future-proofed to run on hydrogen when it becomes widely accessible.

What else do you need to know about Hyliion’s latest power play?

HYLN Stock Trends Up on KARNO Acquisition

With the acquisition of KARNO, Hyliion is well-positioned to enhance the company’s low-emissions performance. As per its announcement, preliminary testing shows KARNO will likely comply with all current and projected emissions standards, even while using traditional fuels.

In fact, the company estimates KARNO could be more efficient than hydrogen fuel cells. For Hyliion, a company known for its electrification of commercial vehicles, the generator is capable of lowering fuel costs and improving driving range. It should also enhance the vehicle’s comfort, in terms of noise, vibration, and repair frequency, compared to traditional internal combustion engines.

While the technology is clearly promising, it will likely be some time before it is utilized in a Hyliion product. The company is still prepping for the late-2023 release of the Hypertruck ERX powertrain, a natural-gas engine serving as generator. The company expect to follow up with the Hypertruck KARNO in phase two of its transition to hydrogen-powered drivetrains.

The acquisition is expected to close by the end of Q3 2022, with an acquisition value of $37 million, divided between cash and Hyliion stock. As part of the deal, Hyliion will also acquire the Cincinnati-based R&D team that created KARNO.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.