Australian clean energy firm Pure Hydrogen Corporation Limited (ASX: PH2, or ‘Pure Hydrogen’) has initiated a strategic partnership with major shareholders of Hdrive, a premier provider of zero-emissions vehicles in Australia and New Zealand.
Under the agreement:
- Pure Hydrogen will secure a 60% stake in Hdrive International and access to global distribution rights.
- Existing shareholders of Hdrive will collectively own the remaining 40% of interest, retaining the current management team to ensure continuity and alignment of interests.
- This partnership marks a significant milestone for Pure Hydrogen in its strategic plans to offer turn-key hydrogen solutions to the Australian market and beyond.
Hdrive has recently overseen the production and delivery of Pure Hydrogen’s Taurus truck, Australia’s first hydrogen fuel cell prime mover developed for PepsiCo (refer ASX Announcement 18 April 2023). Footage from the drive day of the Taurus prime mover truck can be found at www.purehydrogen.com.au/videos. Hdrive is also near completion of its first hydrogen fuel cell refuse collection vehicle, one of the first in Australia, which is set to be trialled by JJ Waste & Recycling (refer ASX Announcement 21 March 2022), Australia’s largest privately-owned waste management company.
The agreement will take effect subject to customary precedents, including the execution of distribution agreements and the transfer of employment contracts. The partnership with Hdrive aligns with Pure Hydrogen’s goal to become the most cost-effective hydrogen supplier through the provision of reliable turn-key transport solutions. The deal also extends Hdrive’s current distribution rights beyond Australia, opening future global expansion opportunities.
As per the agreement, Pure Hydrogen will assume existing loans and obligations of HDI totalling approximately $2.2 million. To acquire its 60% stake in HDI, Pure Hydrogen will issue shares equivalent to the value of the outstanding loans and obligations. The issue price will be calculated using a 5-day volume-weighted average price (VWAP) of Pure Hydrogen shares prior to the completion date of the transaction.
Following completion, Pure Hydrogen has committed to injecting additional working capital into HDI to aid near-term development and distribution initiatives, contingent on sales. Pure Hydrogen has begun discussions with potential investors to secure a rental facility to support truck sales in the near future.
Pure Hydrogen has several rights, including a first right of refusal in case of a proposed exit by an existing Hdrive shareholder. HDI will retain the existing management team.
Managing Director of Pure Hydrogen, Scott Brown, expressed his excitement over the partnership, confident that Hydrogen Electric (HFC) will play a critical role in the future of transport, particularly for larger vehicles (trucks and buses) requiring heavy fuel loads. The Taurus Prime Mover has garnered a positive response and strong interest from potential customers, leading to expectations of increased sales over the coming months.
He also commended Hdrive for their growing operations, impressive suite of Australian-designed hydrogen trucks and buses, and strong partner networks. Brown believes this investment will further develop Hdrive into a market leader in hydrogen vehicles, thereby driving demand for their broader hydrogen business.
The agreement marks a step forward in Pure Hydrogen’s strategy to supply turn-key solutions and hydrogen fuel sources to their customers. The expanded distribution rights also allow Pure Hydrogen to serve their customers’ Australian operations and potentially expand into new markets.
 About Pure Hydrogen Corporation Limited
Pure Hydrogen is a clean energy-focused company striving to be a leader in the development of Hydrogen and Energy Projects using cutting-edge technology processes. It plans to supply hydrogen fuel to Australian customers and regional Asia Pacific markets through the production of Green, Emerald, and Turquoise Hydrogen. At the same time, the Company is developing natural gas projects in Australia and Botswana and holds a strategic investment in a Botswana-focused energy company listed on the Australian Securities Exchange.
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