Pure Hydrogen, an Australian clean energy company, has struck a groundbreaking deal to boost the adoption of hydrogen fuel cell (HFC) vehicles. The company, known for its pioneering efforts in the HFC vehicle domain, has secured a funding facility of $125 million from Australian financier Monard Capital and its US-affiliate.
Pure Hydrogen’s agreement with Monard Capital heralds a new era in clean transportation. The funding facility will be utilized to acquire hydrogen fuel cell trucks, vehicles, and equipment, which will subsequently be available for rent to approved customers. This comprehensive package includes not only the assets but also services and a hydrogen supply, underlining the company’s commitment to providing a holistic and convenient solution. The funding is expected to be allocated by early 2024, after undergoing a formal accreditation process.
The company will establish a special purpose entity to house the rented HFC assets, offering rental terms ranging from three to ten years. This approach ensures flexibility while catering to diverse customer needs. Importantly, Pure Hydrogen’s ownership of the assets opens avenues for post-rental options, such as asset resale, extension of the rental term, or re-leasing to new customers seeking refurbished zero-emission assets.
Australia’s Clean Energy Vanguard
Pure Hydrogen’s contribution to Australia’s clean energy landscape is tangible and far-reaching. The company is on the brink of unveiling Australia’s first hydrogen fuel cell refuse collection vehicle and prime mover. These innovations are set to undergo trials in late 2023, with additional trials scheduled for early 2024. The success of these trials will pave the way for PH2 customers to embrace HFC assets, with over 100 options already in the pipeline. Beyond vehicle innovation, Pure Hydrogen envisions producing hydrogen at multiple plants across Australia, a move that could potentially supply large portions of the country.
The timing of Pure Hydrogen’s funding deal aligns with the surging global interest in hydrogen fuel cell vehicles. The HFC vehicle market’s exponential growth is evident, with a forecasted Compound Annual Growth Rate (CAGR) of 52.9% from 2023 to 2032. The market, valued at approximately $1 billion in 2022, is projected to soar to a staggering $69.61 billion by 2032. This trajectory underscores the pivotal role HFC vehicles are poised to play in revolutionizing transportation and curbing emissions.
Scott Brown, the Managing Director of Pure Hydrogen, emphasizes that the funding facility aligns with the company’s core strategy. It not only supports the procurement of quality HFC assets but also enables the provision of hydrogen supply and services during the rental period and beyond. Brown highlights the strong interest from financiers, who recognize the potential of alternate fuel trucks and devices. This agreement, in his words, signifies the start of many such ventures, reinforcing the company’s faith in hydrogen fuel cell technology and Australia’s burgeoning hydrogen industry.
Pure Hydrogen’s multi-faceted approach, encompassing vehicle innovation, comprehensive services, and strategic funding, showcases its commitment to shaping a sustainable and cleaner transportation landscape. As the company propels the adoption of hydrogen fuel cell vehicles, it paves the way for a future where mobility and environmental responsibility seamlessly converge.
