Pure Hydrogen moves closer to construction phase at Moreton Bay hydrogen hub
Pure Hydrogen’s strategy is to produce and supply hydrogen to Australian and Asia Pacific markets.
Pure Hydrogen Corporation (ASX: PH2) continued to advance its Moreton Bay hydrogen hub project during the three-month period to March, with the procurement of a designated 0.21 square kilometres of land in southeast Queensland to house the manufacturing and distribution facility.
The company said in its latest quarterly that it intends to begin construction at the project this year, subject to approvals, with the plant being operational and generating a revenue by 2024.
It is anticipated the Moreton Bay hydrogen hub will serve customers across the southeast part of Queensland with an initial targeted output of 1,000 tonnes of clean hydrogen per year.
The plant will deploy technology which produces hydrogen from the conversion of woody biomass, which would otherwise be burned or dumped to landfill.
This conversion process will be managed by technology partner Renewable Plus and the hub will be powered by renewable energy via a solar array on site.
During the quarter, Pure Hydrogen confirmed it had executed various agreements related to construction and development of the hub and has prepared documents for the approvals process.
Hydrogen trucks and buses
The company is also building on a strategy to spearhead the sale and distribution of hydrogen fuel cell trucks and buses to facilitate long-term demand in Australia.
Post quarter-end, the company announced that Australia’s first hydrogen fuel cell prime mover would be unveiled at the Brisbane Truck Show in May.
Pure Hydrogen has exclusive distribution rights for the ‘Taurus’ truck, which is an Australian-designed, 220 kilowatt, 6 x 4 prime mover with a hydrogen refuelling point and features including a low-voltage power storage system and luxurious cabin interiors.
Future designs will include models which can handle B-double loads of up to 70 tonnes.
Tranche payment
During the reporting period, Swedish company Renova AB completed a $2 million tranche payment to Pure Hydrogen investee company H2X Global, marking the first phase in the delivery of H2X’s hydrogen-powered commercial trucks to the city of Gothenburg.
The payment forms part of a larger contract awarded to H2X in 2022, which confirmed the demand for H2X’s industry-leading technology in the European market.
The contract comprises two 18t garbage back-loader units, one 3.5t tail-lift light commercial truck and two Warrego pick-up trucks, which are currently awaiting official approval in the Netherlands.
An additional 3.5t tail-lift light commercial vehicle is also planned.
Serowe gas project
Pure Hydrogen has a 30% free carried interest in the Serowe gas project in Botswana, together with a 19.99% holding in ASX-listed Botala Energy (ASX: BTE), which is operator and retains the remaining 70% equity.
Post quarter, Botala confirmed the presence of gas in 35m of coal intersected in three seams at the Serowe-7 well, which was then flow tested.
A second flow test has been considered a significant step towards proving commercial operations within Botala’s tenement holding of 4200sq km.
Flow testing at the Serowe-3 well is also showing a steady increase in bubbling of gas, while pumping water rates are reported to have stabilised as expected.
Last month, Botala secured local asset status and accreditation from the Botswana Investment and Trade Centre, providing increased access to capital markets and local investment partners.
Venus 2 drilling
During the March quarter, Pure Hydrogen advanced plans to drill the Venus 2 well within the proven Walloon coal seam gas fairway which is adjacent to gas pipeline infrastructure in the Surat Basin.
It will be drilled as a horizontal well and the company said it was currently looking to contract a rig.
Project Venus is wholly-owned by Pure Hydrogen and contains high-quality and very prospective acreage covering 154sqkm of the fairway.
Pure Hydrogen believes there is enough coal in the permit to turn into significant gas resources.
Cash at bank
At the end of December, Pure Hydrogen held $13.4 million cash at bank and no debt.
During the March quarter, the company spent $634,000 on operating expenses including $103,000 on directors’ fees and related party consulting remuneration.
The total number of ordinary fully paid shares on issue was 355.16 million and the company had over 12,000 shareholders by quarter end.