Pure Hydrogen is revving up to top gear in 2022 as the Aussie
innovator looks to capitalise on the massive interest in the sector and
its growing technology.

Pure Hydrogen (ASX:PH2) is advancing its position as an Australian green-tech leader, building out the Australian hydrogen sector with further partnerships, hydrogen plants and pilot trials planned for the next 6 to 12 months.

As the company continues to drive growth across its three key revenue streams its become the largest shareholder in Aussie hydrogen fuel cell electric vehicle (FCEV) manufacturer H2X Global Limited, with a 24% stake and option to double on the table.

H2X has entered a deal to establish a joint venture company with Advik Hi-Tech Pvt. Ltd. The companies will together build hydrogen-powered fuel cells, generators, and vehicles for use in India.

The ideal growth market

Pure Hydrogen Managing Director Scott Brown said the partnership between H2X and Advik will catapult the company into India but also reduce costs.

“We are able to take advantage of costs, the fact that labour in India is very cheap,” he said.

“H2X has been a tremendous investment and we are bullish on its outcome as they look to have operations in other countries as well.”

Brown said Pure Hydrogen is also negotiating several deals in India with Advik.

“We are likely to set up our own joint venture with Advik to exploit hydrogen opportunities within the Indian market,” he said.

You beaut, Warrego ute

H2X was one of only a select few companies invited to share their innovations at the COP26 Climate Conference in Glasgow last year.

The company is developing the same revolutionary technology as Tesla rival Rivian (NASDAQ:RIVN).

Its hydrogen powered Warrego ute is due to be launched in the next quarter, with already lots of demand for the green powered vehicle.

“There is a lot of demand for the Warrego in Europe because of the subsidies,” Brown said.

The company has also launched a hydrogen fuel cell powered bus, which is taking orders now.

H2X was handpicked by the Sarawak State government in Malaysia to help it build the region into a major hydrogen hub through production and delivery of hydrogen fuel cell vehicles.

Supplier and reseller

Furthermore, Pure Hydrogen has signed a two-part deal with specialist vehicle importer and distributor BLK auto that will see it become a hydrogen supplier and reseller of hydrogen powered buses.

“We are also looking to do a trial in the garbage truck space with a major waste company within the next six months,” Brown said.

Power H2 Units

Pure Hydrogen and H2X have launched a range of hydrogen fuel cell power generation units that can be used for back-up power or continuous electricity supply.

The Power H2 units, which can generate electricity without emissions by using hydrogen come in standard 5kw, 20kw, 50kw and 100kw capacities and include a small hydrogen storage tank.

The joint venture between H2X and Advik is targeting the sale of 10000 units in 5 years at around AU$28,000 per unit.

“The Power H2 units generate a lot of interest in Australia and globally,” Brown said.

“We are targeting 10,000 units and think that’s achievable given the range of activities and people talking about it.

Brown said the Power H2 units dovetails into the strategic plan for Pure Hydrogen.

“Once you sell the generator you also need hydrogen to run that generator,” he said.

“We can sell a package deal for not only the generator but the hydrogen that goes with it and so are cementing a long-term relationship with the customer.”

He said anyone who has solar, wind or another renewable energy will need a backup like Power H2.

“When the wind isn’t blowing or the sun is not shining, they need to still have a power source,” he said.

“The Power H2 units are a way of making a clean energy investment really work,” he said.

Brown said the Power H2 units are going through certification and once that’s done will be installed with its first Australian customers.

“We have other customers keen on that product, so I expect more orders and units to be manufactured,” he said.

Integrated clean energy company

Pure Hydrogen is working to advance its three separate business arms including H2X and PureX, hydrogen production and natural gas.

“We are trying to create an integrated clean energy company and we think we are unique on the ASX with nothing quite like us having three separate arms that all work together,” Brown said.

“In their own right each could be billion-dollar businesses,” he said.

He said H2X and PureX concentrate on creating fuel cell businesses such as the Warrego, trucks, and buses.

“The technology is the same in all those vehicles so components which replicated and then by having scaled we can get the price point down,” he said.

Hydrogen supply

Pure Hydrogen is researching three different ways of making hydrogen including out of waste, methane and from water.

“All of those methods will have different applications and we are looking at markets in Australia but also internationally including Africa and with the recent Advik deal India and other places in Asia,” Brown said.

“We can make a very big business just out of hydrogen supply.”

Pure Hydrogen has partnered with CAC H₂  to establish Emerald Hydrogen, a plant at Caboolture in Queensland.

“We are looking to partner with companies who have expertise so we can leverage that expertise,” Brown said.

He is confident the plant will be operational within 12 months.

“The plant is progressing well to date, and we have detailed design and are going through approval process,” he said.

The company is also looking to establish a pilot plant for turquoise hydrogen (made from methane) later this year and work going on in the green hydrogen area.

“These are larger scale projects which will take more time but Project Jupiter for example at Gladstone is going well.”

Project Jupiter initially targeted production of 36,000 tonnes increasing to more than 100,000 tonnes per year and is expected to be online in 2025.

Natural Gas

Pure Hydrogen also has significant natural gas resources in its gas fields including Serowe in Botswana and our other fields.

“We can use those gas resources to convert hydrogen and graphene to get superior returns, so all those different arms have great opportunities,” he said.

Brown said hydrogen will be a complete game changer for the Australian and global energy markets.

“We are very bullish on our outlook,” he added.

“There’s quite a lot of activity that is going to be happening for us over the next 12 months.”

Source: This article has originally appeared on Stockhead

Pure Hydrogen is advancing its ambition to be a leader in the hydrogen sector by acquiring a 24% stake in fuel cell pioneer H2X Global.

The agreement recognises the value of H2X’s Hydrogen Fuel Cell Hybrid technology, which powers its Warrego ute that is expected to be on sale in the first half of 2022, and will see the two companies establish a joint venture company, Pure X Mobility, that will develop and sell hydrogen fuel cell trucks and buses such as waste disposal trucks and concrete agitators.

Pure Hydrogen (ASX:PH2) is acquiring the stake in H2X through the issue of 8.2 million shares with some escrow conditions and will receive share options that will take its interest up to 48% if exercised.

It will also become the preferred supplier of hydrogen to H2X.

Pure Hydrogen managing director Scott Brown noted that H2X is at the forefront of the ground-breaking innovation that hydrogen represents in the automotive sector given its potential to cut fuel costs by up to 30% 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.”

Hydrogen Initiatives

Pure Hydrogen’s investment in H2X is timely given its discussions with a range of large industrial users for back to base operations that are considering using hydrogen trucks.

It has also been working closely with well-known truck and bus manufacturers and is building a hydrogen ecosystem that can provide hydrogen solutions including trucks, buses and work vehicles together with the hydrogen fuel to power these vehicles.

The company noted that its agreement with H2X fast-tracked these negotiations and developments.

It added that it would shortly announce off-take and supply arrangements together with some additional partners to assist in the development and commercialisation of its multifaceted solution.

This comes as hydrogen demand is forecast to increase tenfold to more than 500 million tonnes by 2050.

Transportation is of special interest given that it is one of the largest sources of greenhouse gas emissions globally and has been identified as one of the primary early adopters of hydrogen.

Source: This article has originally appeared on Stockhead.