Landmark year of deals sets Pure Hydrogen on path to generate revenue in 2023

Landmark year of deals sets Pure Hydrogen on path to generate revenue in 2023

Over the past 12 months, Pure Hydrogen Corporation (ASX: PH2) has made significant progress in delivering on its mission to develop a hydrogen ecosystem in Australia which covers all sections of the market from production to end-use.
After signing deals to develop hydrogen production hubs, bringing multiple products to market, securing sales agreements with major companies, and leading a successful IPO for one of its investees, Pure Hydrogen is well-placed to deliver significant value in 2023.
See below a breakdown of Pure Hydrogen’s milestone year.

Indicative 2023/2024 road map to cash flow

*Note: The proposed timetable is based on the current estimates for each activity and is subject to change. There are factors, both internal and external factors, which may change the timetable for these activities.

Moreton Bay Hydrogen Hub to be operational in early 2024

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Pure Hydrgoegn is developing an Emerald Hydrogen production facility in Moreton Bay, which is strategically located 70 km north of Brisbane, so it can supply the south-east region of Queensland with clean fuel — from the Sunshine Coast to the Gold Coast.
Expected to be operational in early 2024, the first plant will initially produce 500kg of Emerald Hydrogen per day, increasing to 2,500kg. The technology being used will also permanently remove 2,000 tonnes of carbon annually. 
As part of Pure Hydrogen’s strategy, it has secured the option to acquire the 21-hectare Moreton Bay site, which will allow for the construction of additional plants to supply the growing hydrogen market.

Moving forward, the Company intend to increase the Moreton Bay Hydrogen Hubs’ value by securing offtake agreements for the clean fuel which will be supplied to customers from 2024.

Moreton Bay represents the initial site in a proposed network of hydrogen energy hubs Pure Hydrogen plans to develop with CAC-H2 across Australia’s East Coast, with multiple other sites currently being reviewed.

Turquoise hydrogen production on track for 2024

Render of how the energy in a box system looks from the inside.
Pure Hydrogen signed a binding term sheet with France-based tech company Plenesys to develop back-to-base and industrial Turquoise Hydrogen production modules using Plenesys’ AI-controlled AC plasma torch to decompose methane in an oxygen-free reactor.
The Company expects to start the development of a Turquoise Hydrogen pilot plant in the second quarter of 2023, with a commercial plant planned for 2024. Daily production is anticipated to be between 1,500kg to 5,000kg of hydrogen and 4,500kg to 15,000kg of carbon products.

Two additional Emerald Hydrogen Plants planned for Australia’s East Coast

Design of an Emerald Hydrogen Plant.
Pure Hydrogen has two additional Emerald Hydrogen plants planned in Caboolture (Qld) and the Central Coast (NSW) using technology providers such as CAC-H2 and Omni.
Each plant will be capable of producing an initial 500kg of hydrogen per day before increasing to an estimated 2,500kg per day.
Emerald Hydrogen is produced through a state-of-the-art gasification process that takes waste material and heats it in an oxygenless container without the burn to produce clean energy.
For this reason, it is called turning waste into energy.
This technology will play a key role in the Company’s plans to develop a network of hydrogen production plants across Australia’s East Coast, which will supply the fuel for the fuel cell vehicles it intends to deliver to organisations transitioning to zero-emissions transport.

Renova awards a 70 million SEK contract to H2X Global

Render of H2X’s trucks in the Swedish City of Gothenburg.
Renova AB has made an approximate payment of $2m to Pure Hydrogen’s investee company, H2X Global, marking the first phase in the delivery of hydrogen-powered commercial trucks to the city of Gothenburg, Sweden. 
This forms part of a 70 million SEK contract awarded to H2X Global last year, which Pure Hydrogen believes shows there is a proven market demand market demand for H2X’s industry-leading technology, which stood above other suppliers in a highly competitive tender process.
Pure Hydrogen owns a 23% stake in H2X, which won the contract via a public tender for the supply of five vehicle classes in the 3.5, 5 and 18 tonne categories.
The contract is for two, eighteen tonne garbage back loader units, one 3.5 tonne tail lift light commercial truck and two Warrego Pick-Ups currently being homologated in the Netherlands. An additional 3.5 tonne tail lift Light Commercial Vehicle is also planned. 
The 3.5 and 5 tonne trucks have been designed to provide operators with a range of up to 500km and a load capacity of between 800 to 2,000kg, depending on the vehicle and specifications.
The supply contract was one of the first major purchases in Europe of Hydrogen-powered commercial vehicles and is expected to be the first of a number of similar deals for H2X Global.
It is planned that all vehicles will be fully operational by 2025, with the first truck being scheduled for delivery to Renova AB in December 2023.

Revolutionary hydrogen-powered bus launched

Pure Hydrogen showcased the world’s first hydrogen fuel cell double-decker city bus in Shellharbour (NSW), which has now been added to its distributorship.
The technology the bus demonstrated will be used in the Prime Mover the Company is trialling with PepsiCo and the garbage collection vehicle for JJ’s Waste and Recycling.
Orders are now being taken, with deliveries expected within nine months.

First production release of the Warrego Hydrogen Pick-Up Truck

Pure Hydrogen’s investee company, H2X, completed the initial production for the Warrego, which is believed to be the world’s first Hydrogen Fuel Cell 4WD Pick Up Truck.
The Warrego is now undergoing rigorous vehicle compliance testing in accordance with EU validation and verification standards, which will allow H2X to begin delivering the product to the market in 2023.

PepsiCo Australia partners with Pure Hydrogen

Artist’s impression of a PepsiCo branded hydrogen prime mover.
Pure Hydrogen entered an arrangement with PepsiCo Australia to trial a hydrogen-fuelled Prime Mover at one of PepsiCo’s manufacturing sites in the City of Brisbane.
Pure Hydrogen will supply PepsiCo with a Hydrogen Fuel Cell 160kW 6 x 4 Prime Mover as well as additional hydrogen fuel as required, including refuelling along with arranging repair & maintenance services.
The trial will commence in Q2 2023 and will run for approximately six months.

One of Australia’s first hydrogen fuel cell generators sold

The revolutionary Power H2 units provide clean, reliable, mobile energy.
Pure Hydrogen sold one of Australia’s first hydrogen fuel cell generators to the Plumbing Industry Climate Action Centre, which will be used at the Hydrogen Centre of Excellence in Queensland.
The generator was developed by H2X, using its unique, industry-leading hydrogen fuel cell and powertrain, which will be available in different power sizes from 2 to 100 kW.

Joint venture signed to enter the Indian market

Render of a hydrogen fuel station.
Pure Hydrogen signed a joint venture agreement with Indian-based automotive components manufacturer ADVIK Hi-Tech, with plans to establish an operation in India to produce and supply hydrogen for the heavy vehicle market in India.
There are approximately 8.5 million trucks and over 1.6 million buses registered in India, which makes the impact of transitioning this many vehicles to hydrogen significant to reducing emissions.

Hydrogen-fuelled waste collection vehicles

Render of the hydrogen-fuelled waste collection vehicles.
Pure Hydrogen signed a binding term sheet, which will see the Company become a supplier of JJ’s Waste & Recycling’s hydrogen fuel cell side-lift RCV truck.
Pure Hydrogen will also supply JJ’s Waste with Emerald Hydrogen made from a waste-to-energy process, along with a refuelling service unique to Pure Hydrogen.
In addition, both companies will undertake a trial program with the first vehicle, which is expected for Q2 2023, to determine the effectiveness of the partnering arrangement under the term sheet.

H2X Global’s joint venture with Indian giant Advik to commence production this year

The H2X Global team with the Advik Hi-Tech team at Delhi Auto Components 2023 Expo.
A joint venture between H2X Global and Indian manufacturing heavyweight Advik Hi-Tech signals a major step forward in the production of hydrogen-powered vehicles and support products for the global market.
The new company, ‘Advik H2X’, based in Pune, India, will further develop vehicles and components designed and proven by the H2X engineering team. 
Advik H2X builds on the strong experience of Advik as a master of high-tech components and the global experience of H2X, with over 22 million km of vehicles travelled with its hydrogen systems to date.
The new company expands H2X from the Australian base and its operations in Europe (Sweden) and Asia (Malaysia and Vietnam).
According to the H2X Founder and CEO, Brendan Norman, the first products from the joint venture company will roll off the production line seen in the second half of 2023.

Delivery of hydrogen fuel to the marine sector

Render of marine hydrogen fuel station.
Pure Hydrogen signed a terms sheet with Aus Ships Group to deliver hydrogen fuel to the marine sector. Under the agreement, the two companies will form a joint venture to provide hydrogen fuel cell generators, hydrogen fuel supply and/or fuel cells to the sector.
Pure Hydrogen will initially supply a hydrogen fuel cell generator in mid-2023 to recharge batteries for a battery-powered marine vessel.
Future developments are expected to include the delivery of fuel cells to replace internal combustion generators and reduce the number of batteries.

Botala Energy’s IPO raised $5m

Pure Hydrogen investee Botala Energy (ASX: BTE) successfully raised $5m in its initial public offering to fund a five-well program to test the Serowe CBM Project’s ability to flow gas.
Pure Hydrogen – which holds a 19.99% stake in Botala as part of a sale and purchase agreement – notes that many of its shareholders had participated in the IPO due to the quality of the Serowe Project.
Pure Hydrogen has been advised Botala Energy will begin producing natural gases in 2023.

Botswana H2

Indicative map of the Botswana Renewable Energy Hub.
Pure Hydrogen and Botala Energy (ASX: BTE) executed a term sheet to establish the Serowe Hydrogen Hub and renewable energy business, targeting 50MW power generation.
Hydrogen, solar and other green energy projects are being considered with the joint venture drawing on Pure Hydrogen’s established partnerships and operations in the Australian hydrogen sector along with Botala Energy’s existing gas interests in Serowe.

Looking forward to generating revenue in 2023

With a leading position in clean energy projects around the world and a strong cash position following a $5.8m R&D tax claim, Pure Hydrogen has laid the perfect platform to begin generating revenue in 2023 via the production of hydrogen and sale of fuel cell products.
The Company believes its significant progress will play an integral role in establishing the next generation of infrastructure that will provide Australians with carbon-free power and transport for the next hundred years.
Stay tuned for more details on the exciting projects Pure Hydrogen is developing.