Pure Hydrogen investee H2X Global secures $34m order for hydrogen-powered trucks
Pure Hydrogen (ASX: PH2) investee company H2X Global has received a $34 million order for its hydrogen fuel cell-powered trucks under an existing contract with Swedish waste management company Renova AB.
The vehicles will be configured into garbage trucks for the city of Gothenburg.
The order is expected to be fulfilled over several stages and on completion, Renova will have Sweden’s largest fleet of hydrogen-powered trucks.
Pure Hydrogen managing director Scott Brown said the deal was a step towards a decarbonised future.
“There is a growing consensus that increased weight, limited driving range and longer recharging times make battery-electric vehicles unviable for heavy transport…. hydrogen fuel cells are able to overcome these barriers,” he said.
“We are very encouraged by the progress being made by H2X Global and its multi-million dollar announcement this week.”
Pure Hydrogen owns 23% of Australian vehicle manufacturer H2X.
Mr Brown said Pure Hydrogen was also making good progress in the Australian waste management sector.
The company is currently assessing opportunities for H2X Global’s smaller 18-tonne garbage trucks (similar to the ones which will be deployed by Renova AB) for use in the domestic market.
It is already engaged with waste collection operator JJ’s Waste to deliver Australia’s first ever hydrogen-fuelled garbage truck, with a trial set to commence next quarter along the Gold Coast.
JJ’s Waste currently has over 2000 trucks in operation and Pure Hydrogen said there is potential for additional hydrogen-fuelled trucks to be transitioned into the fleet to reduce the total carbon footprint.
Pure Hydrogen has showcased Australia’s first hydrogen fuel cell prime mover known as the ‘Taurus’ at this month’s Brisbane Truck Show.
The vehicle will be used in a six-month trial by food and beverage giant PepsiCo Australia this year to assess the commercial use case of affordable hydrogen and hydrogen fuel cell vehicles.
Under the terms of the agreement, Pure Hydrogen will provide additional hydrogen fuel as required (including refuelling) along with repair and maintenance services.
Pure is expected to receive up to approximately $98,000 over the trial term (with a minimum amount of $17,400 excluding GST).
If the trial is successful, Pure stands to receive ongoing revenue in the form of a monthly lease fee of approximately $10,500 over a potential seven-year term.
In the event that PepsiCo decides to keep the truck at the end of the trial, it will become solely responsible for the vehicle.
PepsiCo has the option to order additional hydrogen-powered vehicles from now through to 2025.
Pure Hydrogen said the trial would showcase the potential of Australia’s hydrogen market, particularly for the commercial trucking industry which currently relies heavily on the use of diesel fuel.