Pure Hydrogen’s green hydrogen micro-hubs to ‘generate earnings in the short-term’
Link copied to
Special Report: Pure Hydrogen is moving away from developing a single, large hydrogen manufacturing hub and focusing instead on multiple, low-capex green hydrogen micro-hubs close to the customer base.
Pure Hydrogen (ASX:PH2) had previously identified the 21 hectare site in Bracalba, southeast Queensland, as the right spot to develop the Moreton Bay hydrogen hub that would produce an initial 1,000t of clean emerald hydrogen per annum and distribute the gaseous product to its nearby customer base.
Emerald hydrogen takes waste material – such as wood chips – and heats it via an oxygen-free container to produce hydrogen and carbon without emissions.
It contrasts with green hydrogen, which uses renewable energy to power electrolysers that split water into hydrogen and oxygen gas.
The company has now decided not to proceed with acquiring the site at Bracalba, which will remove a significant near-term capex commitment.
Rather, it will develop multiple low capex green hydrogen micro-hubs close to customers that will produce hydrogen using onsite solar and green electricity.
PH2 has already identified some sites that it can lease on competitive terms which would be suitable for micro-hubs to satisfy near term hydrogen demand from hydrogen fuel cell (HFC) truck and bus operators.
This will be accompanied by the provision of ‘turn-key’ micro-hub hydrogen fuel modules built and delivered fully assembled to or near customer sites.
It noted that there’s already a healthy pipeline for the supply of HFC commercial vehicles to potential customers with new supply agreements pending.
“With momentum building downstream, it makes sense for Pure Hydrogen to deploy its efforts and capital where it can generate earnings in the short-term,” Managing Director Scott Brown said.
“If we are to achieve our ambitious goal to be a significant supplier of low-cost hydrogen, it makes sense to focus our efforts on building a customer base now, supplying those customers with ‘whole of life’ solutions including the supply of zero emission vehicles and devices and green hydrogen fuel.” The first question raised with a trucking operator when considering a Hydrogen Fuel Cell Vehicle is “where do I fill it up”. Pure Hydrogen will be able to answer that question – which in the current market cannot be answered.
“Pure Hydrogen’s operations will continue to evolve and we maintain that a ‘capital-light’ profile is the right approach. The decision not to secure the Bracalba site aligns with this approach and means we can deploy capital to pursuing near-term HFC vehicle supply opportunities and convert existing trials into multi-vehicle supply agreements.”
“Pure Hydrogen is aiming to become a hydrogen utility. With respect to developing a network of green hydrogen micro-hubs, we have a number of opportunities earmarked underpinned by existing technology and equipment suppliers.”
“At the same time, we are looking for emerald and turquoise hydrogen production plants with partner technology to provide low-cost hydrogen in the medium to long term.”
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.