Pure Hydrogen is furthering its goal of becoming a market leader in hydrogen by acquiring a 24% share in fuel cell pioneer H2X Global.
The agreement recognizes the value of H2X’s Hydrogen Fuel Cell Hybrid technology, which powers its Warrego ute, which is expected to go on sale in the first half of 2022, and establishes a joint venture company, Pure X Mobility, to develop and sell hydrogen fuel cell trucks and buses, including waste disposal trucks and concrete agitators.
Pure Hydrogen (ASX:PH2) is acquiring a stake in H2X by issuing 8.2 million shares subject to certain escrow requirements and will get share options that, if exercised, will increase its holding to 48 percent.
Additionally, it will become the primary hydrogen supplier to H2X.
According to Pure Hydrogen managing director Scott Brown, H2X is at the cutting edge of the ground-breaking innovation that hydrogen represents in the automotive sector, given its potential to reduce fuel costs by up to 30% when compared to diesel.
“Partnering with H2X not only makes good commercial sense but it also puts Pure Hydrogen in the driver’s seat to capitalise on new and evolving hydrogen technology,” he added.
“We believe this will be a good investment opportunity for Pure Hydrogen, we have achieved it with very minimal dilution and we can bring our strong balance sheet and funding channels as a public company to more aggressively fast-track H2X’s commercialisation plans.
“We are also very excited about the prospects for the Pure X Mobility and its planned focus on developing hydrogen fuel cell powered heavy vehicles such as cement mixers and garbage trucks.
“These industries are logical ‘starters’ for Pure X Mobility as they are short run operators where refuelling can be managed at back-to-base locations. Targeting sectors where we can rapidly bring heavy vehicles to market will be Pure X’s focus and makes logical commercial sense.”
H2X chief executive Brendan Norman added that working with an early mover like Pure Hydrogen would not only provide a solid foundation to build its network of customers, it would also align it with a significantly skilled scientific and technical partner to build a solid platform in Australia as a leading force in the rapidly growing global hydrogen economy.
“As technology leaders and innovators with a track record of bringing hydrogen-powered vehicles to market in what is a new and emerging global industry aligns well with Pure Hydrogen’s growth strategy,” Norman noted.
“We have an excellent platform in place to rapidly bring a range of vehicles to market in relatively short order.”
Pure Hydrogen’s investment in H2X is timely in light of the company’s negotiations with a variety of large industrial users for back-to-base operations that are investigating hydrogen trucks.
Additionally, it has been collaborating with well-known truck and bus manufacturers to develop a hydrogen ecosystem capable of providing hydrogen solutions such as trucks, buses, and work vehicles, as well as the hydrogen fuel used to power these vehicles.
According to the corporation, its partnership with H2X expedited these conversations and advancements.
It stated that it would soon announce off-take and supply agreements with a number of additional partners to aid in the development and commercialization of its holistic solution.
This comes as demand for hydrogen is expected to more than double to more than 500 million tonnes by 2050.
Transportation is of particular relevance because it is one of the greatest contributors to global greenhouse gas emissions and has been highlighted as a key early adopter of hydrogen.