Pure Hydrogen accelerates growth in Latin America with US$28 million distribution deal

• PH2 secures landmark supply deal with GreenH2 LATAM for Hydrogen equipment
• Deal includes supply of electrolysers along with refuelling, storage and transport solutions
• Also capitalises on new hydrogen-friendly policies by the Mexican government

Special Report: Pure Hydrogen has scored an important Master Supply and Distributor Agreement (MSDA) with the Mexico City-based GreenH2 LATAM for hydrogen equipment supply to the tune of US$28m.

In November last year, Pure Hydrogen (ASX:PH2) expanded its global distribution network for its zero emission vehicles and hydrogen equipment via a deal with GreenH2 LATAM to order at least 20 vehicles within 12 months of the term sheet being signed.

The MSDA formalises the commercial partnership with GreenH2 LATAM, a leading clean energy company based in Mexico City which is transforming the energy sector in Latin America through sustainable and high-performance green hydrogen solutions.

It’s perfect timing for Pure Hydrogen to expand its distribution plans in Mexico, with the recent election of Claudia Sheinbaum as the country’s President, who has set an ambitious goal to boost renewable energy to 45% of Mexico’s electricity production by 2030.

Mexico is now poised for a significant shift toward renewable energy, marking a clear break from previous policies focused on fossil fuels.

The latest collaboration with GreenH2 is expected to capitalise on these policy changes, further strengthening the partnership’s potential for growth and long-term success.

The MSDA stipulates that PH2 will be the preferred supplier on two projects in Mexico for the supply of hydrogen equipment – including four 2.5MW electrolysers – hydrogen compression and refuelling equipment, and hydrogen storage and transport equipment, valued at a total of US$28m (~A$44m).

GreenH2 LATAM also has the opportunity to maintain distribution exclusivity in Mexico and Colombia by generating a minimum of US$20m in net sales revenue per year from the sale of equipment supplied by PH2.

Expanding global distribution deals

Pure Hydrogen has proven electrolyser technologies and an automated manufacturing capability that fits perfectly with GreenH2 LATAM’s plans to produce and deliver hydrogen reliably and cost-effectively.

This agreement follows a swathe of recent distribution deals, further strengthening Pure Hydrogen’s position in the global hydrogen market and expanding its reach into key Latin American regions.

“We are delighted to finalise this transformative agreement with GreenH2 LATAM, underscoring the increasing demand for hydrogen solutions in Latin America,” PH2 managing director Scott Brown said.

“Following our recent orders with TOLL Transport and Heidelberg Materials, this deal further validates our strategy and enhances our global reach.”

“North America remains a key market for us, presenting immense revenue opportunities. While hydrogen equipment sales typically involve extended lead times, our robust pipeline positions us for continued growth and long-term success.”

“These initial projects represent just the beginning of what we anticipate to be a strong and sustained demand from the region.”

“As we continue to enhance the design and cost-effectiveness of our hydrogen equipment, we are confident in our ability to meet the accelerating global shift towards clean energy.”

“We expect further orders and sales to follow – particularly for our vehicle range where some competitors have recently pulled out of the market, creating a tremendous opportunity.”

GreenH2 LATAM CEO Héctor Sánchez Baena said the partnership represents a tremendous opportunity to accelerate clean energy adoption across Mexico and beyond.

“After an extensive evaluation of available solutions, we determined that Pure Hydrogen provides the optimal combination of value, performance, and reliability,” Baena said.

“We are confident that, together, we can drive substantial revenue growth while contributing meaningfully to the transition to a greener future.”

This article was developed in collaboration with Pure Hydrogen, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.