The Future of Power May Be Behind the Meter with Hyliion CEO Thomas Healy
On this episode of Path to Zero, host Tucker Perkins sits down with Thomas Healy, founder and CEO of Hyliion, a company that has undergone a remarkable transformation. It went from developing electrified powertrains for heavy-duty trucks to creating a new approach to distributed power generation.
Founded by Healy while he was a student at Carnegie Mellon University, Hyliion initially focused on reducing emissions in the commercial trucking industry. But as market conditions shifted and electricity demand surged, the company made a bold pivot toward power generation. Today, Hyliion is focused on commercializing its KARNO generator, a modular system designed to provide reliable, fuel-flexible electricity wherever it’s needed.
As Healy explained, the company saw a future where access to electricity—not transportation—would become one of the defining challenges of the modern economy.
A Different Way to Generate Electricity
At the heart of Hyliion’s strategy is the KARNO generator, a technology based on a modernized Stirling engine design. Unlike traditional generators that rely on internal combustion engines or turbines, KARNO uses a proprietary flameless oxidation process to generate heat and convert it into electricity.
The result is a system that can achieve extremely low emissions while maintaining high efficiency and reliability.
Perhaps most importantly, the technology is designed for continuous operation rather than emergency backup power.
“Our business model is this is prime power,” Healy explained. “This is the way you should make electricity and remove your dependency from the grid and make your own electrons.”
The vision is straightforward: place power generation directly at commercial buildings, industrial facilities, data centers, and other locations where electricity is consumed, reducing reliance on an increasingly strained electric grid.
Why Power Demand Is Changing Everything
Throughout the conversation, Healy repeatedly returned to a topic dominating discussions across the energy industry: explosive growth in electricity demand.
Artificial intelligence, data centers, manufacturing expansion, electrification, and population growth are all placing new demands on power systems.
“Everyone is seeing their power rates go up,” Healy said. “People are starting to look at, if I can’t get the electricity I need from the utility, can I make it myself behind the meter?”
For many customers, the challenge is no longer simply finding affordable electricity. It’s obtaining enough electricity at all.
That reality is creating growing interest in distributed generation solutions that can provide power without waiting years for new grid infrastructure.
The Advantage of Fuel Flexibility
One of KARNO’s most distinctive features is its ability to operate on a wide range of fuels.
While many technologies are designed around a single energy source, Healy says Hyliion’s system can run on more than twenty different fuels, including natural gas, propane, hydrogen, diesel, renewable natural gas, ammonia, and others.
That flexibility is increasingly valuable in a world where fuel prices, regulations, and energy policies continue to evolve.
“I don’t think any of us can bet on what the fuel of choice is going to be over the next 10, 20, or 30 years,” Healy said.
Rather than forcing customers to commit to a single fuel pathway, KARNO is designed to adapt as markets and technologies change.
Powering the AI Economy
Like many guests on Path to Zero this season, Healy discussed the growing impact of artificial intelligence on energy demand.
While massive hyperscale data centers may require hundreds of megawatts—or even gigawatts—of power, Healy believes distributed generation can play an important role alongside traditional grid infrastructure.
Rather than replacing large power plants, KARNO systems can help handle fluctuating power demands and provide additional reliability for facilities where uptime is critical.
Hyliion also sees opportunities in smaller data centers, commercial facilities, industrial sites, and other applications where customers want greater control over their energy costs and reliability.
From the Navy to Commercial Buildings
The conversation also explored the diverse range of applications for the technology.
Hyliion is currently working with the U.S. Navy and other military organizations on projects ranging from autonomous ships to remote and resilient power systems.
The military’s interest stems largely from KARNO’s low-maintenance design. Unlike conventional generators, the system does not require lubricating oil, making it particularly attractive for applications where regular maintenance is difficult or impossible.
But the same characteristics that appeal to the military—reliability, flexibility, and resilience—are also attracting interest from commercial customers.
In California, emissions are often the primary driver. In data centers, reliability and speed-to-power dominate the conversation. In industrial settings, fuel flexibility can be the deciding factor.
The Role of Advanced Manufacturing
Another key differentiator for Hyliion is its use of advanced manufacturing.
Many of KARNO’s most important components are produced using metal additive manufacturing, commonly known as 3D printing.
According to Healy, some of the system’s performance advantages would simply not be possible using conventional manufacturing techniques.
The technology allows engineers to create highly complex geometries that improve efficiency and heat transfer while reducing size and weight.
“We like to look at it as this KARNO technology only exists because of additive manufacturing,” Healy said.
For Healy, additive manufacturing isn’t just a production method—it’s what made the entire product possible.
Looking Ahead
After years of development, Hyliion has begun delivering its first commercial systems and is preparing for broader commercialization and scale-up over the next several years.
For Healy, the journey has included major pivots, market volatility, and difficult decisions. But he remains convinced that distributed generation will play a growing role in the future energy landscape.
He believes businesses increasingly want control over their electricity costs, reliability, and energy security.
And if technologies like KARNO can deliver electricity cheaper than the grid while providing additional flexibility and resilience, the market opportunity could be substantial.