'Wilful and malicious' | Texas firm accuses Plug Power of stealing its hydrogen liquefaction secrets, sues for millions
JTurbo says it invented the ‘ultra-efficient’ equipment now being sold by the electrolyser maker, and had been in negotiations on an exclusive partnership when its technology was misappropriated
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JTurbo then shared “certain information — part of its trade secrets — in confidence”, with Joule Processing, a Houston-based engineering firm later bought by Plug Power, under a non-disclosure agreement (NDA) “on or about April 1, 2021”.
Later that month, after Joule engaged engineering company Fluor to validate Thomas’ technology, Joule and JTurbo entered into an exclusivity agreement for Joule to be the “exclusive worldwide packager and provider for JTurbo’s H2L IP [hydrogen-to-liquid intellectual property] technology”, the lawsuit states.
“Prior to JTurbo reaching out to Joule, Joule had virtually no experience in the Cryogenic Liquefaction Technology industry... Plug also had no experience in Cryogenic Liquefaction Technology industry,” the lawsuit states.
“JTurbo solely developed the process liquefaction cycle design without any input from Plug or Joule.”
In May 2021, Plug Power discussed with Joule and JTurbo “its desire to develop a hydrogen liquefier to complete their value chain”, and Plug and JTurbo subsequently entered into a non-disclosure agreement, the lawsuit document says.
The lawsuit states: “Joule was worth around $2 million to $5 million before JTurbo shared their trade secrets, know-how, process simulations, designs, and vendor lists.
“The technology that Joule — a small engineering company of about 20 people, turning over a few million per year — was sold for several multiples of its topline to Plug.
“The only technological asset Joule, and now Plug, had of import as US energy policy changes, is JTurbo’s trade secrets.”
The document adds that Joule and Plug “knew that forcing Thomas out of the equation was the only way to leverage his technology and squeeze him out”.
“The evil that was done to JTurbo and Thomas is that they were brought to the table by Joule, and led to believe Joule could be trusted, when Joule with its conspirator, Plug, decided to wreak havok [sic] on Thomas / JTurbo, taking that which Thomas has spent the better part of his life developing,” it states.
“The misappropriation was also willful and malicious because Joule and Plug Power consciously disregarded the JTurbo’s trade secret rights. They knew that the information provided by JTurbo was confidential pursuant to Section 4 in the Amended Exclusivity Agreement and NDA but still engaged in transactions without compensating or licensing the JTurbo H2L IP from JTurbo.”
The Texas company is seeking damages at the United States District Court for the Southern District of Texas of $11.2m from Plug — the compensation it expected to receive from the four licensing contracts signed between itself, Joule and Plug.
Plug Power manufactures electrolysers, fuel cells and refuelling equipment, and builds its own green hydrogen projects.