SYDNEY, AUSTRALIA: Pure Hydrogen Corporation Limited (PH2) is significantly expanding its investment in the hydrogen sector by acquiring an initial 24% interest in Hydrogen Fuel Cell vehicle company H2X Global Limited and establishing Pure X Mobility Pty Limited as an entity for the development of Hydrogen Fuel Cell-powered Truck and Buses for use in the Australian market.
Pure Hydrogen has signed a term sheet setting out that Pure Hydrogen will receive a 24% interest in H2X shares for 8.6 million shares in PH2, which will have some escrow conditions.
In addition, Pure Hydrogen also receive options to increase it interest to 48% in H2X. The agreement is subject to customary condition precedents and is expected to close in a few weeks.
H2X and Pure Hydrogen have signed a Preferred Supplier Agreement where Pure Hydrogen will be the preferred supplier of Hydrogen to H2X.
This significant development underpins H2X’s plans to develop a variety of Hydrogen Fuel Cell powered vehicles. Pure Hydrogen’s hydrogen logistics experience will secure the re-fuelling requirements of vehicles being developed by H2X. Additionally, Pure Hydrogen will provide through a new entity being established, Pure X Mobility Pty Limited (‘Pure X’) trucks for deployment for back to base operations such as waste disposal and concrete agitator trucks that the Company plans to bring to market.
H2X is an innovator in hydrogen automotive technology and is behind the team bringing the much-heralded Warrego Hydrogen Utility to the Australian market for sale in the first half of 2022.
It also has a range of hydrogen vehicles and power generating units. It focuses on unique Fuel Cell technology and Hydrogen Powertrains for commercial transport operations such as: utilities buses, vans, trucks and prime movers.
Managing Director Scott Brown commented: “The efficiency provided by hydrogen in new automotive technology is a game-changer for the industry and H2X is at the forefront of this ground breaking innovation. 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.
“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 refueling 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 CEO Brendan Norman added: “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 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. We have an excellent platform in place to bring a range of heavy vehicles to market relatively quickly.”