- Pure Hydrogen (PH2) is set to acquire up to a 48 per cent stake in hydrogen automotive tech company H2X Global
- The companies have signed a term sheet which involves PH2 claiming an initial 24 per cent stake but will receive options to increase its interest
- PH2 has also established a new company to support the development of hydrogen fuel cell-powered trucks and buses in the Australian market
- Pure Hydrogen says this investment puts it in the driver’s seat to take advantage of new and evolving hydrogen technology
- Company shares end the day 6.9 per cent in the green to close at 31 cents
Pure Hydrogen (PH2) has expanded its investment in the hydrogen sector by acquiring a 24 per cent interest in H2X Global.
H2X is a hydrogen automotive technology company who uses its own hydrogen fuel cell and hydrogen power trains to install into utilities buses, delivery vans, trucks and prime movers.
The companies signed a term sheet which sets out the Pure Hydrogen will receive a 24 per cent stake in H2X shares for 8.6 million shares in PH2. The company will also receive options to increase its interest in H2X to 48 per cent.
They also signed a preferred supplier agreement which confirms Pure Hydrogen as H2X’s preferred supplier of hydrogen.
Aligning with its strategy, Pure Hydrogen has established Pure X Mobility as an entity to support the development of hydrogen fuel cell-powered trucks and buses including waste disposal trucks and concrete agitator trucks within the Australian market.
PH2 Managing Director Scott Brown said this is a good investment opportunity to fast track H2X’s commercialisation plans.
“Hydrogen has the potential to cut fuel costs by up to 30 per cent when compared with traditional 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 said.
“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.”
H2X CEO Brendan Norman also commented on the agreement.
“Coming together with one of Australia’s first-movers in the hydrogen fuel sector not only provides us with a solid foundation upon which to build the network of customers, but also we are gaining a significantly skilled scientific and technical partner that will allow us to build a solid platform in Australia as a leading force in the rapidly growing global.”
Hydrogen is currently gaining significant momentum and the global demand is expected to increase to 100 million tonnes by 2030 and exceed 500 million tonnes by 2050.
With transportation being one of the largest sources of greenhouse gas emissions globally, it has been identified as one of the main early adopters of hydrogen energy.
PH2 ended the day 6.9 per cent in the green to close at 31 cents.