Pure Hydrogen (ASX: PH2), an Australian company, is making significant strides toward a decarbonised future through its investee company, H2X Global. H2X Global has recently secured a substantial $34 million order for its hydrogen fuel cell-powered trucks. The order, placed by Swedish waste management company Renova AB, will involve configuring the vehicles into garbage trucks for the city of Gothenburg. This development positions Renova to possess the largest fleet of hydrogen-powered trucks in Sweden. Pure Hydrogen’s managing director, Scott Brown, emphasised the pivotal role of hydrogen fuel cells in overcoming the limitations of battery-electric vehicles for heavy transport.
Advancing Toward a Decarbonised Future
Scott Brown highlighted the growing consensus within the industry that battery-electric vehicles face challenges related to weight, limited driving range, and longer recharging times, rendering them impractical for heavy transport. In contrast, hydrogen fuel cells offer a solution to overcome these barriers. Brown expressed enthusiasm for the progress made by H2X Global, commending the multi-million dollar order as a significant step forward.
Pure Hydrogen’s Investment in H2X Global
Pure Hydrogen holds a 23% ownership stake in H2X Global, an Australian vehicle manufacturer. The company’s investment aligns with its commitment to fostering the growth of hydrogen-powered transportation. With a focus on the waste management sector in Australia, Pure Hydrogen is currently exploring opportunities for H2X Global’s smaller 18-tonne garbage trucks, similar to those commissioned by Renova AB. The company is engaged in discussions with waste collection operator JJ’s Waste, aiming to introduce Australia’s first hydrogen-fueled garbage truck. The trial is expected to commence next quarter along the Gold Coast. With JJ’s Waste operating over 2,000 trucks, the potential for transitioning additional hydrogen-fueled vehicles into the fleet holds promise for reducing the overall carbon footprint.
Showcasing Hydrogen Fuel Cell Technology
Pure Hydrogen recently unveiled Australia’s first hydrogen fuel cell prime mover, known as the ‘Taurus,’ at the Brisbane Truck Show. The vehicle is slated for a six-month trial with PepsiCo Australia, a prominent food and beverage company. The trial aims to assess the commercial viability of affordable hydrogen and hydrogen fuel cell vehicles. Pure Hydrogen will provide additional hydrogen fuel, repair and maintenance services throughout the trial period. The company anticipates receiving up to approximately $98,000 during the trial (with a minimum amount of $17,400 excluding GST). If the trial proves successful, Pure Hydrogen stands to generate ongoing revenue through a monthly lease fee of approximately $10,500 over a potential seven-year term. In the event that PepsiCo decides to retain the truck after the trial, it would assume full responsibility for the vehicle. PepsiCo also retains the option to order additional hydrogen-powered vehicles through 2025.
Unleashing the Potential of Australia’s Hydrogen Market
The trial with PepsiCo presents a valuable opportunity to showcase Australia’s hydrogen market, particularly in the commercial trucking industry that heavily relies on diesel fuel. The successful integration of hydrogen fuel cell vehicles has the potential to revolutionise the transportation sector, significantly reducing emissions and advancing sustainability goals.
Pure Hydrogen’s investee company, H2X Global, has secured a remarkable $34 million order for its hydrogen fuel cell-powered trucks, marking a significant milestone in the transition toward a decarbonised future. The partnership with Renova AB will establish Sweden’s largest fleet of hydrogen-powered trucks, while ongoing trials with PepsiCo Australia aim to demonstrate the commercial viability of hydrogen and hydrogen fuel cell vehicles in the Australian market. These developments highlight the potential of hydrogen as a sustainable solution for the transportation industry, paving the way for reduced carbon emissions and a greener future.
