Fuel cell electric buses could be the key for the hydrogen sector to enter the mainstream. Pic: Getty images
Energy
Pure Hydrogen has kicked off the new year with a two-part deal that will see it become a hydrogen supplier and reseller of hydrogen powered buses.
The binding five-year term sheet with specialist vehicle importer and distributor BLK Auto, which brought the first hydrogen-powered bus to Australia, is another step in the company’s goal of building enough critical mass for a hydrogen ecosystem in the country.
This might well be the breakthrough that the hydrogen sector needs given that there are several thousands plying public transport routes in Sydney alone.
Besides supplying hydrogen to BLK Auto, Pure Hydrogen (ASX:PH2) will also resell hydrogen fuel cell electric vehicles (HFCEVs) to customers.
Both companies are also likely to offer customers the ability to buy HFCEV buses under a “wet hire” model that will be packaged with the hydrogen supply.
This agreement, which includes an option for a one-year extension, will allow the two companies to more efficiently cater to the Australian transport industry’s growing demand for hydrogen-powered fleets of buses and trucks and capitalise on growing demand from governments and corporates with fleet requirements.
“We are pleased to be partnering with BLK Auto. This term sheet is just the first step in both parties building out a hydrogen ecosystem and providing our potential customers the greatest range of vehicles possible together with hydrogen fuel,” managing director Scott Brown said.
“In Australia BLK Auto is known for its hydrogen fuel cell buses and we have a great opportunity to leverage that expertise for the benefit of both companies.”
His BLK counterpart Jason Pecotic added that the terms sheet laid the foundation for a long-standing and positive partnership between the two companies that would see the rapid take-up of hydrogen fuel cell-powered electric buses and trucks in Australia, and in the east coast in particular.
“We look forward to finalising these negotiations in the very near-term with a view to bringing our aligned objectives to fruition in 2022,” Pecotic added.
The terms sheet with BLK Auto is just part of Pure Hydrogen’s overall efforts to take a leading role in the nascent hydrogen industry.
On the mobility front, it had signed a terms sheet in November to supply seven HFCEV trucks to AKM Earth with green hydrogen to be provided by CAC H2 under the terms of its agreement to build three wood waste to hydrogen plants on Australia’s east coast.
In December, the company and H2X Global launched a range of hydrogen fuel cell power generation units.
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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