The MoU with VAHC could open up a massive opportunity for Pure Hydrogen as Vietnam moves to replace its diesel bus fleet with clean alternatives. Pic: Getty Images.
Energy
Special Report: Pure Hydrogen could potentially supply multiple hydrogen fuel cell vehicles to Vietnam after signing a Memorandum of Understanding with the Vietnam ASEAN Hydrogen Club (VAHC).
The MoU sets the framework for the supply of multiple vehicles from the company’s fleet to be used as part of a demonstration of hydrogen fuel cell vehicles in Ho Chi Minh city.
It adds to the growing recent momentum for Pure Hydrogen’s (ASX:PH2) zero emissions vehicles subsidiary HDrive International, in both domestic and international markets.
Just last week, the company executed an agreement to sell a Taurus hydrogen fuel cell prime mover to Victoria’s largest regional urban water corporation Barwon Water.
Other recent activity includes an MoU with commercial vehicles supplier Riverview International Trucks for the potential distribution and supply of its trucks in California and a term sheet with the City of Newcastle for the 12-month lease of a rear-loading HFC waste collection vehicle with an option for a four-year extension.
In April, PH2 delivered two electric mini-buses to Sapphire Coast Buslines in NSW and signed a sales agreement with Solo Resource Recovery in April for a rear-loading HFC waste collection vehicle, which adds to the garbage trucks that Solo is taking delivery of soon.
Example of PH2’s HFC minibus. Pic: Pure Hydrogen
The VAHC is a Vietnam-based policy group which coordinates the advancement of Vietnam’s hydrogen industry across key stakeholders in government and the private sector.
In conjunction with the Vietnamese tourism partners and industrial partners, VAHC will fund the supply of three HFC minibuses to run sightseeing tours and two HFC coaches.
This will highlight how hydrogen vehicles can play a key role in Vietnam’s transition to clean energy solutions for passenger transport services.
Ho Chi Minh’s public transport bus system has 152 different bus routes that cover most of the major tourism destinations within and near the city.
As part of the Vietnamese Government’s stated strategy to achieve net zero emissions by 2050, policymakers are targeting a significant reduction in diesel bus fleets for most major Vietnamese cities.
This could result in the replacement of 70-90% of the current fleet with clean alternatives by 2030.
Needless to say, this represents a significant opportunity for PH2 to get in on this shift.
The MoU also sets out the framework for PH2 to supply a 1MW alkaline electrolyser to produce hydrogen and hydrogen refuelling equipment.
If fully executed, the agreement could generate revenue of about $8.8m for PH2.
Under the terms, VAHC will pay a 50% deposit with the balance on delivery.
“We are pleased to sign this MoU with the Vietnam ASEAN Hydrogen Club, which sets out the framework for a comprehensive hydrogen vehicle supply agreement as part of the Vietnam Government’s stated priority to implement clean energy alternatives for passenger transport services,” managing director Scott Brown said.
“The completion of the MoU follows an extensive period of negotiation and collaboration between the parties, and we look forward to working to deliver the HFC buses and hydrogen equipment VHAC.”
“Vietnam has made a clear policy commitment to significantly reduce carbon emissions from its extensive passenger transport networks across major cities, and we look forward to playing a key role and in spearheading that shift with our market-leading hydrogen vehicle fleet.”
VAHC chairman Le Ngoc Anh Minh said the group wanted to spearhead the growth of hydrogen infrastructure in Vietnam by establishing a first hydrogen demonstration project in Ho Chi Minh city.
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.
