Pure Hydrogen Unlocks $125 Million Funding for Hydrogen-Powered Truck Rental Operations

By August 31, 2023 4   min read  (662 words)

August 31, 2023 |

Pure Hydrogen Unlocks 125 Million Funding for Hydrogen Powered Truck Rental Operations

Pure Hydrogen Corporation collaborates with Monard Capital to provide a $125 million financial facility aimed at boosting the rental of hydrogen fuel cell trucks and buses.

Sydney– Australia-based clean energy enterprise Pure Hydrogen Corporation Limited (ASX: PH2) is delighted to disclose that it has finalized a term sheet with Australian financing company Monard Capital Pty Limited and its U.S. affiliate. The term sheet outlines the terms for a $125 million funding facility.

The central aim of this facility is to finance the acquisition of Hydrogen Fuel Cell (HFC) trucks, vehicles, and equipment, collectively referred to as ‘assets’. These assets will then be made available for rent to Pure Hydrogen’s pre-approved customer base. The rental package will include maintenance services as well as the supply of hydrogen fuel.

This initiative is currently under a formal accreditation process. Once finalized, the facility is expected to become operational in early 2024, offering Hydrogen Fuel Cell trucks that are appealing in terms of both emissions and capital investments.

To manage these assets, Pure Hydrogen plans to create a special purpose entity, ‘the vendor,’ wholly owned by the company. The assets will be rented to customers through the vendor on a minimum three-year term and can extend up to a maximum of ten years. The rental rates will be competitively priced and determined based on each customer’s creditworthiness.

At the conclusion of the rental period, customers will have the option either to return the assets or to extend their rental term. The vendor, as the owner of the assets, will also hold the option to sell or re-lease these zero-emission vehicles to new customers.

As a part of its broader hydrogen initiative, Pure Hydrogen is nearing the completion of Australia’s first hydrogen fuel cell refuse collection vehicle and prime mover, with trials expected to commence in late 2023. Another trial for a refuse collection vehicle is planned for early 2024. Subject to successful trials, the company has already secured over 100 options for HFC assets, as indicated in their ASX announcement dated August 10, 2023.

Scott Brown, Managing Director of Pure Hydrogen, expressed his enthusiasm about the new funding venture, saying, “We’re thrilled to make strides in our financial strategies with this newly inked agreement, unlocking an initial $125 million financial package. This facility empowers Pure Hydrogen to offer competitive rental rates for our hydrogen fuel cell trucks. A key element in our roadmap, this funding also paves the way for us to provide continuous hydrogen supply to the rented assets throughout and beyond the rental term.”

He continued, “The enthusiastic reception from the financial sector during our tendering phase is highly encouraging, with investors eagerly seeking opportunities in alternative fuel technologies. We anticipate this $125 million contract will be a precursor to many more as the hydrogen fuel cell technology gains traction and as Australia’s burgeoning hydrogen industry comes into its own.”

“In aligning this funding with our faith in hydrogen fuel cell technology and the caliber of assets we’re acquiring, we’re optimistic about delivering excellent commercial results for our clients in the coming years. Additionally, as the end-term asset owners, we expect robust ROI for our shareholders, facilitated by an extended asset lifecycle and consistent hydrogen servicing throughout the asset’s life,” Brown concluded.

About Pure Hydrogen Corporation Limited

Pure Hydrogen is a clean energy frontrunner with a vision to become an industry leader in hydrogen and energy projects, employing state-of-the-art technological solutions. The company has ambitions to cater to the hydrogen needs of customers in Australia as well as in the Asia-Pacific region through the manufacturing of Green, Emerald, and Turquoise Hydrogen. Simultaneously, Pure Hydrogen is engaged in natural gas ventures in Australia and Botswana, and holds a strategic investment in a Botswana-centric energy corporation listed on the Australian Securities Exchange.

Strategically, Pure Hydrogen aims to nurture early-stage companies or projects within the renewable energy sector, eyeing profitable returns from these ventures.


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