Dear Fellow H2X Shareholder,
Over the past two years, H2X has focused on stabilising the business, strengthening governance, validating our technology partnerships, and positioning your Company for long-term commercial execution.
Importantly, the activities undertaken over the past month continue to demonstrate H2X’s transition from an engineering and development-stage business into an execution-stage hydrogen mobility platform focused on deployment, delivery and commercial scale.
During the month since our last update, H2X has:
- progressed detailed CAD engineering of the Paroo platform with FES GmbH
- continued promoting the already roadworthy Yarra platform
- commenced expanding European sales capability
- refreshed and expanded the H2X website
- participated in Austrade-led hydrogen delegations across Germany and Poland
- engaged directly with European ministries, hydrogen valleys, municipalities and infrastructure groups
- continued progressing your Company’s exchange listing pathway
- attended shareholder and investor meetings across Sydney, Melbourne, Brisbane and Wellington, with Perth to follow.
- prepared for participation in this week’s World Hydrogen Summit in Rotterdam
Operational momentum surrounding H2X continues to build.
Engineering Progress – The Paroo Continues to Take Shape
At the centre of H2X’s platform strategy remains the modular removable hydrogen powertrain architecture, designed to extend asset life, reduce replacement costs and improve lifecycle economics for fleet operators.
The progression of the Paroo platform continues to be one of the most exciting developments within H2X.
I have personally enjoyed working closely with both the H2X engineering team and our engineering and production partner, FES GmbH in Germany, as the vehicle architecture progresses from concept into increasingly detailed CAD and engineering design.
Watching the vehicle progressively take shape through the CAD process has been rewarding for the entire team. The Paroo is increasingly reflecting exactly what we set out to build: a commercially practical hydrogen-powered fleet vehicle designed for real-world operational deployment.
The platform targets the strategically important global 3.5 to 5.5 tonne commercial vehicle segment, one of the largest fleet replacement opportunities globally as municipalities, logistics operators and governments accelerate decarbonisation initiatives.
Critically, the Paroo is being designed specifically around operational realities:
- payload retention
- rapid refuelling
- reliability
- maintainability
- long service intervals
- multi-shift fleet operation
Alongside Paroo, H2X continues to actively promote the already roadworthy Yarra heavy vehicle platform.
The Yarra remains important because it demonstrates that H2X is not operating purely as a conceptual hydrogen company. H2X already possesses deployable hydrogen vehicle capability through its engineering ecosystem and partnerships.
H2X also continues building a broader commercial platform through hydrogen storage systems already operating on-road in Europe. This creates both immediate commercial validation and an additional revenue pathway independent of full vehicle production scale-up.
The combination of:
- Yarra (available now)
- Paroo (available for pre-order)
- proprietary hydrogen tank capability
positions H2X not simply as a vehicle supplier, but as a broader hydrogen mobility deployment and integration platform.
Importantly, H2X does not need to capture a large share of the European commercial vehicle market to build a meaningful business. Even modest penetration into targeted hydrogen-suitable fleet segments represents a significant long-term opportunity.
Collectively, these activities continue to progressively de-risk H2X’s pathway toward commercial deployment and scalable production.
H2X has also commenced a significant refresh and expansion of your Company’s website this month to better showcase our products, technology, strategy, and positioning within the global hydrogen mobility sector.
Growing Commercial Presence Across Europe
As H2X progresses toward broader commercial deployment, your Company is now actively strengthening its sales and commercial presence across Europe.
Recruitment activity is currently underway to support:
- hydrogen tank sales
- Yarra deployment opportunities
- Paroo pre-orders
- municipal fleet engagement
- hydrogen mobility partnerships
Europe continues to represent one of the world’s most attractive hydrogen mobility markets, particularly across:
- municipal fleets
- industrial transport
- logistics
- waste management
- hard-to-electrify heavy transport sectors
Strategically, H2X continues positioning itself not as a speculative hydrogen concept, but as a practical deployment and integration company capable of delivering real hydrogen fleet solutions.
The first commercial fleet deployments are expected to represent more than engineering milestones. They are intended to convert development activity into operational validation, revenue generation and repeatable deployment pathways.
Australian Government Support Continues to Strengthen
H2X remains extremely grateful for the support received from the Australian Government as your Company continues to grow.
This support has occurred across multiple levels:
- non-dilutive R&D funding
- Austrade-led international delegations
- introductions to European government stakeholders
- engagement with hydrogen clusters
- introductions to municipalities and industrial groups
- support for Australian hydrogen capability internationally
Notably, this support materially strengthens H2X as a business.
The combination of:
- government-backed R&D support
- international trade and diplomatic engagement
- export market introductions
- infrastructure and hydrogen ecosystem access
provides H2X with access and opportunities that would otherwise be extremely difficult and capital-intensive for a company at our stage to independently establish.
The Australian Government R&D Tax Incentive remains strategically important to H2X and continues supporting qualifying domestic and international engineering activities.
Australian Government R&D Support and Overseas Findings
The Australian Government R&D Tax Incentive continues to materially strengthen your Company’s ability to progress advanced hydrogen vehicle engineering while remaining capital disciplined.
H2X currently holds Advance Overseas Findings coverage relating to qualifying international R&D activities for the period 1 July 2023 through to 30 June 2026. This has been particularly important given the highly specialised nature of hydrogen vehicle engineering and the requirement to work with international engineering and production partners across Germany, South Korea and Europe more broadly.
Last month H2X also commenced work on the next submission relating to qualifying domestic and international R&D activities for the period 1 July 2026 through to 30 June 2029.
Your Company continues to work closely with specialist advisers regarding both domestic and overseas qualifying expenditure as H2X progresses increasingly sophisticated hydrogen vehicle, storage and systems integration activities.
Importantly, the ability for H2X to access both domestic and qualifying international R&D support materially improves your Company’s capital efficiency and further reinforces the strategic value of Australian Government support as H2X continues to scale globally.
Austrade Delegations: Germany and Poland
This month, H2X was honoured to participate in Austrade-supported hydrogen delegations across both Germany and Poland leading into next week’s World Hydrogen Summit in Rotterdam.
I would particularly like to thank the Austrade teams in both Germany and Poland for the professionalism, preparation and introductions provided throughout the program.
For a company such as H2X, Austrade plays an extremely important role.
Hydrogen mobility is an industry built around long-term relationships between:
- governments
- municipalities
- infrastructure providers
- industrial groups
- transport operators
- technology partners
The ability for Australian companies to receive trusted introductions into international markets materially accelerates commercial engagement opportunities that would otherwise take years to establish independently.
What is increasingly clear is that hydrogen deployment across Europe is no longer theoretical. Governments and industry are now actively progressing implementation frameworks, infrastructure buildout and commercial deployment pathways.
For H2X, this creates significant long-term opportunity.
Rotterdam – World Hydrogen Summit
This week, H2X will participate in the World Hydrogen Summit in Rotterdam alongside governments, infrastructure developers, hydrogen producers, municipalities, industrial groups and global mobility participants.
Importantly, H2X enters Rotterdam not simply with conceptual ambitions, but with:
- roadworthy hydrogen vehicle capability
- progressing commercial vehicle platforms
- certified hydrogen storage systems
- active engineering programs
- strengthening European relationships
- growing government engagement
For H2X, participation at this level reflects your Company’s continued transition into internationally engaged hydrogen deployment discussions alongside governments, infrastructure providers and industrial participants.
These discussions are focused on the major themes shaping the future hydrogen economy globally.
Participants include senior representatives from major European infrastructure groups, government ministries, hydrogen industry organisations, ports, research institutions and international policy bodies.
The level of engagement being facilitated around H2X continues to reinforce the growing maturity and seriousness of the global hydrogen economy.
Strengthening Governance and Building Confidence
Over the last month, I have appreciated the opportunity to spend time engaging directly with shareholders, potential investors and strategic stakeholders across:
- Sydney
- Melbourne
- Brisbane
- Wellington
These discussions have been particularly valuable to me personally.
While investor meetings naturally involve discussion around strategy, engineering progression, governance and commercial execution, what I have enjoyed most has been the opportunity to better understand the people behind the investment, their backgrounds, perspectives, long-term thinking and belief in what H2X is working to achieve.
As CEO, it is easy to become heavily focused on the operational demands of building a company within an emerging global industry. Spending time directly with shareholders serves as an important reminder that H2X is ultimately being built alongside a community of people who genuinely want to see your Company succeed.
I want shareholders to know that their support, engagement and feedback are genuinely valued and heard.
Recent investor discussions have continued reinforcing that, alongside near-term execution, investors are increasingly focused on the long-term scale potential of deployable hydrogen mobility platforms and the role H2X can play within the global hydrogen transition.
Personally, these interactions continue to provide me with additional motivation and determination to drive H2X toward achieving its maximum potential.
Importantly, the activities undertaken over the past month continue to demonstrate a company progressing operationally, commercially and strategically.
Exchange Engagement and Listing Progression
During the reporting period, I also appreciated the opportunity to personally meet with representatives of the Exchange and work through aspects of your Company’s In-Principal listing application, including discussion around the detailed application of specific listing rules and governance requirements.
The discussions were constructive, professional and reflective of the rigorous review process expected as part of progressing a public market listing application.
H2X does not have any concerns at this stage regarding the progression of the application process and management looks forward to continuing to work collaboratively toward completing the In-Principal listing application process shortly.
Delivery Remains the Core Priority
Despite growing international engagement and commercial expansion activity, your Company’s core operational focus remains unchanged:
delivery.
The progression toward first fleet deployment remains the single most important milestone for H2X.
Real-world vehicle deployment remains the catalyst that validates:
- engineering capability
- operational reliability
- hydrogen economics
- commercial viability
- fleet integration capability
The Board, management team, engineering partners and strengthened governance structure remain highly focused on progressing toward this outcome.
Looking Ahead
The global hydrogen economy continues to mature rapidly.
Governments and industry are increasingly moving beyond policy announcements and into:
- infrastructure deployment
- industrial funding programs
- hydrogen corridors
- fleet decarbonisation pathways
- commercial implementation
- long-term energy security planning
Against this backdrop, H2X continues building the operational foundations required for long-term execution and scalable growth:
- advanced engineering capability
- international manufacturing partnerships
- certified hydrogen systems
- government engagement
- European market access
- expanding commercial and sales capability
- strengthening governance
- progressing commercial deployment pathways
Over recent years, management has remained focused on building the underlying foundations required to support a long-term globally relevant hydrogen mobility business. Increasingly, we believe these foundations are now beginning to align:
- government support
- engineering capability
- infrastructure momentum
- international partnerships
- commercial engagement
- and growing market demand for practical fleet decarbonisation solutions
The hydrogen transition remains a long-term industrial transformation. However, it is increasingly clear that the industry is now moving from concept and policy discussion toward implementation and deployment.
For H2X, the focus remains disciplined execution, commercial deployment and converting the significant groundwork established over recent years into long-term shareholder value.
I also look forward to representing both Australia and H2X Global at the World Hydrogen Summit in Rotterdam this week alongside the Australian hydrogen delegation. The summit provides an important opportunity to continue strengthening relationships with governments, infrastructure groups, industrial operators, investors and international hydrogen stakeholders as H2X continues expanding its global engagement.
Following Rotterdam, I also look forward to meeting with shareholders and investors in Perth the following week as we continue discussing the long-term opportunity and progression of H2X.
Thank you again for your continued support as we continue building H2X Global.
Antony Tolfts
Chief Executive Officer