Pure Hydrogen secures funding to accelerate turquoise hydrogen development

Sydney-headquartered new energy specialist Pure Hydrogen Corporation (ASX: PH2) has signed a new funding deal to help advance the development of its turquoise hydrogen technology.

Pure Hydrogen is working in collaboration with French plasma technology company, Plenesys to develop the unique turquoise hydrogen technology.

The new funding deal with Turquoise Group is an important milestone in its turquoise hydrogen plans.

Turquoise hydrogen and its growth rate forecasts

One of a number of clean energy fuels being developed globally, turquoise hydrogen is made using a process called methane pyrolysis to produce hydrogen and solid carbon. Developers are aiming for turquoise hydrogen to be valued as a low-emission hydrogen as the world moves towards zero carbon targets.

The global turquoise hydrogen market was valued at $23.1 million in 2022 and is forecast to grow at a CAGR of 214% and reach $221 billion in 2031.

Investment agreement terms

Under the agreement between Pure Hydrogen and Turquoise Group, the latter will make an initial $1.6m investment to be allocated to turquoise hydrogen developments.

It is envisaged that further funds will be raised to help develop a commercial module which is to be progressed in 2024.

The companies have agreed that Pure Hydrogen will retain a 40% interest in Turquoise Group for the first 3.5 years.

Pure Hydrogen also has the exclusive right to purchase all hydrogen produced by Turquoise Group in Australia, for a period of 20 years.

Pure Hydrogen managing director, Scott Brown, said the turquoise hydrogen project is now funded to accelerate the next phase of the turquoise hydrogen manufacturing facility in Australia.

“Pure Hydrogen will be carried while still maintaining a 40% undiluted shareholding for 3.5 years, thus maintaining healthy upside exposure to this unique development project, which will include future access to low-price hydrogen within Australia produced with net-zero carbon emissions.

“Pure Hydrogen will have rights to buy all of the hydrogen offtake produced and not consumed by Turquoise Group. This agreement is testament to the potential value of the development assets, and the $1.6 million in funding is expected to provide sufficient capital to mature the project.”

Powering ahead on a number of fronts

Alongside its turquoise hydrogen aspirations, Pure Hydrogen Corporation continues to power ahead on a number of fronts with its development of hydrogen-powered automotive technologies.

The company recently celebrated news that H2X Global, a company in which it has a 20.3%1 shareholding, had confirmed the value of a major, $34 million contract in Sweden.

In May, H2X Global revealed it had been chosen as supplier for a significant fleet-wide contract by Renova AB for the purchase of hydrogen fuel-powered commercial trucks for the City of Gothenburg in Sweden.

Multiple use designs

The hydrogen fuel cell-powered trucks have been designed to meet a range of truck configurations required by Renova, including tail lift dumpers, garbage compactors, hook lifts, and crane loaders.

The vehicles were found to be particularly attractive to the people of Gothenburg as they offer the same range and load capacity as traditional fossil-fuelled vehicles while delivering zero emissions.

Pure Hydrogen is confident there is potential to build on the initial contract as H2X Global was nominated as preferred supplier in the tender process, specifically for hydrogen fuel cell vehicles in 12 out of 13 fuel cell vehicle categories and it retains the right to supply up to 37 HFC trucks to Renova AB during the 2023 and 2024 calendar years.

Local market collaboration

Pure Hydrogen managing director, Scott Brown, said Pure Hydrogen continues to collaborate with H2X on tendering opportunities, including in the Australian waste management sector.

The Australian company is currently evaluating local opportunities for H2X Global’s smaller 18-tonne garbage trucks, similar to the ones selected for the City of Gothenburg contract.

Garbage truck contract on target

Pure Hydrogen is currently preparing to deliver the first ever hydrogen fuelled garbage truck into the Australian market.

The company is on target to supply local contractor JJ’s Waste with a hydrogen fuel cell, side-lift refuse collection vehicle (RCV truck) and will commence a trial next quarter with the first truck targeted to be based on Queensland’s Gold Coast.

JJ’s Waste has a massive fleet of more than 2,000 trucks, and Pure Hydrogen is confident that if the trial is successful, there is potential for further hydrogen fuelled trucks to be transitioned into the company’s fleet.

Taurus on the move

Pure Hydrogen is again preparing to show off its state-of-the-art Taurus hydrogen powered prime mover to potential customers.

Taurus is set to be put through its paces with PepsiCo Australia, under an initial agreement announced in September 2022.

Under that agreement PepsiCo will use the trials to determine if Taurus has a commercial use case and it has the option to order additional hydrogen-powered vehicles from this year through to 2025.

Pure Hydrogen recently successfully show-cased the Taurus at the Brisbane Truck Show to a large and appreciative audience.

Just yesterday the company hosted an open day in Brisbane where guests including Energy Minister Mick De Brenni test drove the prime mover.