Pure Hydrogen is revving up to top gear in 2022 as the Aussie innovator looks to capitalise on the massive interest in the sector and its growing technology.
Pure Hydrogen (ASX:PH2) is advancing its position as an Australian green-tech leader, building out the Australian hydrogen sector with further partnerships, hydrogen plants and pilot trials planned for the next 6 to 12 months.
As the company continues to drive growth across its three key revenue streams its become the largest shareholder in Aussie hydrogen fuel cell electric vehicle (FCEV) manufacturer H2X Global Limited, with a 24% stake and option to double on the table.
H2X has entered a deal to establish a joint venture company with Advik Hi-Tech Pvt. Ltd. The companies will together build hydrogen-powered fuel cells, generators, and vehicles for use in India.
The ideal growth market
Pure Hydrogen Managing Director Scott Brown said the partnership between H2X and Advik will catapult the company into India but also reduce costs.
“We are able to take advantage of costs, the fact that labour in India is very cheap,” he said.
“H2X has been a tremendous investment and we are bullish on its outcome as they look to have operations in other countries as well.”
Brown said Pure Hydrogen is also negotiating several deals in India with Advik.
“We are likely to set up our own joint venture with Advik to exploit hydrogen opportunities within the Indian market,” he said.
You beaut, Warrego ute
The company is developing the same revolutionary technology as Tesla rival Rivian (NASDAQ:RIVN).
Its hydrogen powered Warrego ute is due to be launched in the next quarter, with already lots of demand for the green powered vehicle.
“There is a lot of demand for the Warrego in Europe because of the subsidies,” Brown said.
The company has also launched a hydrogen fuel cell powered bus, which is taking orders now.
Supplier and reseller
Furthermore, Pure Hydrogen has signed a two-part deal with specialist vehicle importer and distributor BLK auto that will see it become a hydrogen supplier and reseller of hydrogen powered buses.
“We are also looking to do a trial in the garbage truck space with a major waste company within the next six months,” Brown said.
Power H2 Units
Pure Hydrogen and H2X have launched a range of hydrogen fuel cell power generation units that can be used for back-up power or continuous electricity supply.
The Power H2 units, which can generate electricity without emissions by using hydrogen come in standard 5kw, 20kw, 50kw and 100kw capacities and include a small hydrogen storage tank.
The joint venture between H2X and Advik is targeting the sale of 10000 units in 5 years at around AU$28,000 per unit.
“The Power H2 units generate a lot of interest in Australia and globally,” Brown said.
“We are targeting 10,000 units and think that’s achievable given the range of activities and people talking about it.
Brown said the Power H2 units dovetails into the strategic plan for Pure Hydrogen.
“Once you sell the generator you also need hydrogen to run that generator,” he said.
“We can sell a package deal for not only the generator but the hydrogen that goes with it and so are cementing a long-term relationship with the customer.”
He said anyone who has solar, wind or another renewable energy will need a backup like Power H2.
“When the wind isn’t blowing or the sun is not shining, they need to still have a power source,” he said.
“The Power H2 units are a way of making a clean energy investment really work,” he said.
Brown said the Power H2 units are going through certification and once that’s done will be installed with its first Australian customers.
“We have other customers keen on that product, so I expect more orders and units to be manufactured,” he said.
Integrated clean energy company
Pure Hydrogen is working to advance its three separate business arms including H2X and PureX, hydrogen production and natural gas.
“We are trying to create an integrated clean energy company and we think we are unique on the ASX with nothing quite like us having three separate arms that all work together,” Brown said.
“In their own right each could be billion-dollar businesses,” he said.
He said H2X and PureX concentrate on creating fuel cell businesses such as the Warrego, trucks, and buses.
“The technology is the same in all those vehicles so components which replicated and then by having scaled we can get the price point down,” he said.
Hydrogen supply
Pure Hydrogen is researching three different ways of making hydrogen including out of waste, methane and from water.
“All of those methods will have different applications and we are looking at markets in Australia but also internationally including Africa and with the recent Advik deal India and other places in Asia,” Brown said.
“We can make a very big business just out of hydrogen supply.”
Pure Hydrogen has partnered with CAC H2 to establish Emerald Hydrogen, a plant at Caboolture in Queensland.
“We are looking to partner with companies who have expertise so we can leverage that expertise,” Brown said.
He is confident the plant will be operational within 12 months.
“The plant is progressing well to date, and we have detailed design and are going through approval process,” he said.
The company is also looking to establish a pilot plant for turquoise hydrogen (made from methane) later this year and work going on in the green hydrogen area.
“These are larger scale projects which will take more time but Project Jupiter for example at Gladstone is going well.”
Project Jupiter initially targeted production of 36,000 tonnes increasing to more than 100,000 tonnes per year and is expected to be online in 2025.
Natural Gas
Pure Hydrogen also has significant natural gas resources in its gas fields including Serowe in Botswana and our other fields.
“We can use those gas resources to convert hydrogen and graphene to get superior returns, so all those different arms have great opportunities,” he said.
Brown said hydrogen will be a complete game changer for the Australian and global energy markets.
“We are very bullish on our outlook,” he added.
“There’s quite a lot of activity that is going to be happening for us over the next 12 months.”
Source: This article has originally appeared on Stockhead