Pure Hydrogen Corporation (ASX: PH2) has presented its plans to build Australia’s hydrogen ecosystem by becoming a utility that aims to be the lowest-cost producer and supplier of hydrogen.
The Company outlined it will achieve this through its capital-light structure and the strategic development of Australia’s most diverse portfolio of hydrogen projects, from production to end-use fuel cell products, such as prime movers, generators and waste trucks.
- Developing Emerald & Turquoise Hydrogen production plants which are anticipated to be operating commercially in the next 12 months.
- No debt and cash position of ~$14.7 million as off 31 December 2022 provides a strong platform for growth & project advancement.
- Targeting to build a network of hydrogen facilities across Australia focusing on manufacturing, storage, transport and supply.
- Delivering products to customers in 2023; waste trucks, generators, and prime movers.
- Agreements are in place in Australia, Europe, Malaysia and India for Pure Hydrogen and its investees to deliver hydrogen fuel cell devices.
- Due to run trials of its first hydrogen-powered truck with PespiCo in Q2 CY23.
- The truck will be on display at the Brisbane Truck Show, where there is potential for an initial order of 10 or more.
Strategy de-risked by capital light structure:
- Selling hydrogen for high gross margins of potentially 50% or more.
- Aligning with technology partners whose hydrogen devices Pure Hydrogen can sell for a margin while locking in long-term hydrogen supply contracts for customers.
- A utility model where Pure Hydrogen is a third-party seller of the hydrogen for suppliers/producers.
- Partnerships with companies that have the technology to develop & operate Emerald, Turquoise & Green Hydrogen plants, while Pure Hydrogen focuses on sales/distribution.