Dear H2X Shareholder,
As I enter my 17th month as CEO of H2X Global, I am pleased to share this latest update on our mission to commercialise clean transport solutions and build long-term value for our shareholders.
I arrived in the Netherlands last night to better understand what is holding up Warrego’s completion. While I share the frustration, I will not pre-empt conclusions. My focus is on getting us back on track.
That said, we cannot afford to stand still. Our broader momentum—strengthened by government support, new partnerships, and expanding product lines—continues to build.
R&D Tax Rebate – Government-Backed Innovation and Shareholder Value
At H2X, our focus is on developing the next generation of zero-emission commercial transport—including our proprietary powertrain, storage systems, and control architecture.
Following a rigorous independent review, H2X has received a positive Overseas Finding under the Australian Government’s R&D Tax Incentive. This confirmation ensures that our European and UK-based innovation activities qualify under the program through to at least June 2026. As a result, we recently received an initial rebate of AUD $986,083, with the next tranche expected as early as next month.
The R&D Tax Incentive is a vital, non-dilutive funding source that rewards deep innovation and accelerates time to market—multiplying the impact of every dollar our shareholders invest. This national validation of our technology comes on the back of H2X being named one of Australia’s Most Innovative Companies at the AFR BOSS Awards in October 2024.
Commercial Progress – Hydrogen Tanks Launch with Early Traction
Alongside our vehicle development programs, we have now launched H2X’s hydrogen storage tanks as a standalone commercial product line.
Initially designed for internal use, these tanks are certified under UN ECE R134, have a 15-year service life, and are designed to operate in harsh temperature environments from –40°C to +65°C. Early orders—while modest in volume—point to an immediately profitable product, with applications across transport, industrial, and stationary energy sectors.
We will soon launch a refreshed product section on our website with technical documentation and product specifications ranging from 1.6 to 7.2 kilograms of hydrogen capacity.
Paroo – A Scalable, Fleet-Focused Hero Vehicle
While the Warrego platform has demonstrated our hydrogen powertrain technology in action, our long-term focus remains on the Paroo 3.5-tonne light truck—a flexible, scalable model purpose-built for fleet deployment in urban logistics, trades, and municipal services.
Our engineering team is currently evaluating several potential UK- and EU-based partners for the initial build. We are also reviewing updated donor vehicle platforms that can provide OEM-approved software access, which is critical to reducing integration complexity and enabling smoother fleet servicing.
We aim to commence engineering work shortly and will be seeking targeted funding to support the build of the first Paroo vehicle. If you are interested in participating in this upcoming investment opportunity, please feel free to contact me directly.
The Paroo will incorporate H2X’s hydrogen tanks and the latest Toyota fuel cell system, maintaining full alignment with our core technology platform.
Strategic Execution – The 18-Tonne Yarra and Building at Scale
Last week, I visited Germany to meet with several leading engineering firms capable of supporting our 18-tonne Yarra hydrogen truck. I am pleased to report that we have identified a highly credible partner with capacity to produce up to 100 vehicles annually, and a willingness to support scaling manufacturing—potentially in Australia—as the platform matures.
Engineering programs in both Germany and the Netherlands, would create a dynamic ecosystem of collaboration, accountability, and performance benchmarking. This dual-track approach will also provide optionality for the Paroo program as development progresses.
Corporate Progress and Investor Engagement
Last week, DGWA, the leading German investment bank for international SMEs (www.dgwa.org), arranged an investor and shareholder lunch for H2X in Munich. The event provided a strong platform to present our product roadmap, hydrogen technology portfolio, and commercialisation strategy to a targeted group of European investors. The reception was highly encouraging, and I am now following up on several promising discussions that emerged from the event.
In parallel, we are progressing a series of corporate and governance initiatives to support H2X’s next phase of growth. These developments are focused on strengthening operational execution, enhancing transparency, and positioning the company for long-term value creation. I look forward to outlining more detail in the next CEO Letter.
Closing Thoughts
As we close out the Australian financial year ending 30 June 2025, I am pleased to report that we continue to operate with strong financial discipline. Unaudited results show a further 50% reduction in operating expenses, and we maintain a solid balance sheet, giving us the flexibility to respond quickly to future growth opportunities.
While early-stage commercialisation brings complexity, the direction is clear: we are progressing toward delivery, scaling our engineering footprint, and validating our platform with investors, government, and industry partners.
Thank you again for your continued support and confidence in H2X. If you would like to discuss our progress or strategic direction in more detail, I remain available and welcome the opportunity to connect.
Antony Tolfts
Chief Executive Officer
H2X Global Limited
About H2X Global
H2X Global is a leader in zero-emission hydrogen fuel cell vehicles, setting new standards for commercial transportation with extended driving ranges and fast refuelling times. From the world’s only hydrogen-powered 4×4, the Warrego, to our innovative retrofit strategy and upcoming Paroo truck, H2X is driving the future of clean, sustainable transportation.
