• PH2’s first revenues from emissions free cell vehicles expected this month
  • Significant pipeline of HFC truck orders in place should vehicle trials be successful
  • Green hydrogen micro-hub strategy also being progressed
  • Turquoise hydrogen demonstration plant expected to start production in April


Special Report: 2024 is shaping up to be a watershed year for Pure Hydrogen’s clean energy transportation business with 60%-owned subsidiary H-Drive International poised to receive first revenue this month.

The company had acquired the stake in H-Drive in July 2023 to better position itself in the hydrogen sector as inroads are made into heavy and commercial transport.

It has developed a range of hydrogen fuel cell powered vehicles including a refuse truck, a heavy truck and a low floor city bus, as well as its battery electric commercial vehicles which have attracted considerable attention in the form of trials and initial orders.

H-Drive also has the capacity to assemble up to 200 vehicles a month, granting Pure Hydrogen (ASX:PH2) with the ability to meet significant sales volumes if needed.


Sales orders already in place

H-Drive already has three six-month trial commitments, as well as eight firm vehicle orders for delivery this year.

It also has a significant pipeline for further sales with >100 truck options subject to successful trials.

Notable examples are the US$1.22 million purchase order to supply a 6X4 50t prime mover and 54-seater coach to California-based Nutcher Hydrogen in CY2024 and the refuse truck trials with JJ Richards and Solo, both of which are large waste management groups in Australia.

The vehicles that will be supplied to Nutcher – a specialist heavy vehicle dealership – will initially be used as demonstration vehicles which could allow PH2 to break into one of the world’s largest addressable markets.

The H-Drive International waste collection truck. Pic: Supplied (PH2)


Meanwhile, successful trials with either (or both) JJ Richards and Solo could deliver multi-vehicle fleet orders with JJ Richards operating more than 2,000 vehicles, while Solo services ~15,000 customers.

This success has allowed the company to identify a $125 million funding facility partner, which will allow it to lease vehicles and supply hydrogen on long-term contracts.


Green hydrogen micro-hubs

This year also marks a significant milestone in PH2’s strategy to progressing its green hydrogen micro-hub strategy.

These micro-hubs, to be located close to customers, will produce green hydrogen using on-site solar and green electricity to power module-built electrolysers that are delivered to site fully assembled and will offer 24-hour refuelling for hydrogen fuel cell vehicles.

Adding further interest, these hubs are designed to be easily scalable in-line with increasing demand.

PH2 is currently exploring partnership opportunities with its customers to install micro-hubs at their depots and is targeting first production from a micro plant in Queensland.

Needless to say, there is significant potential for synergy with the company’s H-Drive subsidiary.


Turquoise hydrogen demonstration to start soon

PH2 investee company Turquoise Group (40%-owned) is currently installing its turquoise hydrogen demonstration plant and expects it to be operational in April.

Turquoise hydrogen involves the controlled decomposition of methane gas (natural gas) – a process known as methane pyrolysis – into both hydrogen and solid carbon products such as graphene.

The patented three-phase plasma torch system is highly energy efficient and water-free, while steering clear away from producing carbon dioxide emissions.

PH2’s strategic 40% investment interest in Turquoise Group is non-dilutive for a 3.5-year period.

It also grants the company exclusive rights to acquire hydrogen produced by Turquoise Group within Australia for a 20-year period at attractive market prices.


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.