Pure Hydrogen’s mobility business scores an early win
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Pure Hydrogen’s joint venture with H2X Global has sped out of the gates with a terms sheet to supply seven hydrogen fuel cell trucks to AKM Earth.
Pure X Mobility, which was formed a little more than a month ago after Pure Hydrogen (ASX:PH2) acquired a strategic 24% stake in H2X, will replace the diesel components of existing trucks with H2X’s fuel cell powertrains.
Green hydrogen will be provided to the company by CAC H2 under the terms of its agreement to build three wood waste to hydrogen plants on Australia’s east coast.
“We are excited to work with AKM Earth to deliver these HFCV trucks using proven technology that Pure X Mobility brings,” managing director Scott Brown said.
“We believe this will be an excellent example of how we can bring zero emission commercial vehicles to market. Paving the way as a local business to set the standard in reducing emissions across their core business.”
Securing the contract will not only deliver the expected revenue from supplying the trucks, it could also generate a steady (if modest) stream of cash flow from hydrogen supply.
Pure Hydrogen is currently working with other industrial users to supply back-to-base fuelling solutions, offtake agreements and vehicle supply.
The HFCV trucks will be assembled in Australia and will be the first to be provided under the Pure X brand.
AKM Earth – a provider of environmental management services – will use the raw skips trucks for short-run, back-to-base pick-up and delivery of building waste around Brisbane, the Gold Coast and the Sunshine Coast.
These are expected to benefit from the use of fuel cells that are about twice as efficient as internal combustion engines, which will deliver considerable fuel savings over their expected seven-year supply term.
Hydrogen fuel cells vehicles are likely to find favour from industrial and commercial users over their battery counterparts due to the ease of refuelling, which shortens the amount of time that they are not on the roads.
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.