PERTH (miningweekly.com) – ASX-listed Pure Hydrogen will acquire an initial 24% interest in hydrogen fuel cell vehicle company H2X Global and establishing Pure X Mobility as an entity for the development of hydrogen fuel cell-powered truck and buses for use in the Australian market.
In return for the 24% interest in H2X, Pure Hydrogen will issue about 8.6-million of its own shares, which will have some escrow conditions.
In addition, Pure Hydrogen will also receive options to increase its interest to 48% in H2X, and has inked a preffered supplier agreement under which Pure Hydrogen will be the preferred supplier of hydrogen to H2X.
Pure Hydrogen’s hydrogen logistics experience will secure the refuelling requirements of vehicles being developed by H2X, and the company will provide, through Pure X Mobility, trucks for deployment for back to base operations such as waste disposal and concrete agitator trucks that the company plans to bring to market.
“The efficiency provided by hydrogen in new automotive technology is a game-changer for the industry and H2X is at the forefront of this ground-breaking innovation. Hydrogen has the potential to cut fuel costs by up to 30% when compared with traditional diesel,” said Pure Hydrogen MD Scott Brown.
“Partnering with H2X not only makes good commercial sense but it also puts Pure Hydrogen in the driver’s seat to capitalise on new and evolving hydrogen technology.
“We believe this will be a good investment opportunity for Pure Hydrogen; we have achieved it with very minimal dilution and we can bring our strong balance sheet and funding channels as a public company to more aggressively fast-track H2X’s commercialisation plans.
“We are also very excited about the prospects for the Pure X Mobility and its planned focus on developing hydrogen fuel cell-powered heavy vehicles such as cement mixers and garbage trucks. These industries are logical ‘starters’ for Pure X Mobility as they are short run operators where refueling can be managed at back-to-base locations. Targeting sectors where we can rapidly bring heavy vehicles to market will be Pure X’s focus and makes logical commercial sense.”