PH2 is expanding in Mexico, Latin America and Africa under the agreement with GreenH2 LATAM. Pic: Getty Images
Energy
Special Report: Pure Hydrogen has expanded the global distribution network for its zero emission vehicles and hydrogen equipment after executing a term sheet with GreenH2 LATAM.
The agreement, which has a 36-month term, sets out the framework for the non-exclusive distribution of hydrogen fuel cell (HFC) trucks, battery electric and HFC buses, hydrogen equipment (including production & refuelling infrastructure) and hydrogen fuel cell generators in Mexico, Latin America, and Africa.
It is subject to Pure Hydrogen (ASX:PH2) demonstrating it has arrangements in place to ensure the battery electric and hydrogen fuel cell electric vehicles will satisfy all applicable laws and GreenH2 LATAM ordering at least 20 vehicles within 12 months of the term sheet being signed.
Mexico City-based, GreenH2 is dedicated to transforming the energy sector in Latin America through sustainable and high-performance green hydrogen solutions.
PH2 has been progressing its strategy to grow its existing dealership network in North America with agreements signed with ETHERO Truck + Energy in October and Riverview International Trucks in July.
“We are pleased to have signed this agreement with GreenH2 LATAM, deepening our collaboration with Latin America to create future opportunities within the zero-emission commercial vehicle market,” PH2 managing director Scott Brown said.
“This is our fourth agreement in the North American region, demonstrating the quality of our diversified vehicle range and associated equipment and infrastructure. As we continue to receive significant interest across this market, we expect to secure similar agreements with strategic distribution partners in the near future.
“We’re confident with our progress so far and look forward to turning the strong interest into binding sales.”
GreenH2 chief executive Héctor Sánchez Baena said the agreement with PH2 strengthened his company’s capabilities in delivering zero-emission solutions across the region while aligning with its commitment to providing sustainable, high-performance energy options that can transform industries and communities alike.
Latin America is expected to leverage its abundant natural resources to generate substantial clean energy, granting it a significant role in global renewable energy production.
The region has seen substantial investments in renewable energy over the past decade, attracting ~US$19.6bn in renewable energy investments in 2021 with the lion’s share going to Brazil (US$13.3bn) and Mexico (US$3.4bn).
Interest in green hydrogen projects has also increased with announced investments totalling $40bn as of early 2024.
About 65% of the region’s electricity is already sourced from renewables and is continuing to experience rapid growth in solar and wind energy.
Highlighting this, installed solar photovoltaic capacity in Latin America and the Caribbean surpassed 45 gigawatts in 2022, reflecting a significant increase over the past decade.
For PH2, the growing renewable infrastructure provides a strong opportunity to integrate zero emission vehicles, generators and equipment into the market.
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.
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