Pure Hydrogen buys 24 percent of H2X Global fuel cell vehicle company
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The H2 and clean energy solutions firm has acquired nearly a quarter of the Australian FCV maker.
Pure Hydrogen (ASX stock symbol PH2) recently announced that it has acquired a 24 percent stake in the fuel cell vehicle (FCV) maker H2X Global.
The FCV maker builds H2 powered trucks and buses to be used in the Australian market.
The announcement stated that Pure Hydrogen had signed a term sheet which indicated that the company was to obtain 24 percent of H2X shares in exchange for 8.6 million PH2 shares. The deal involves certain escrow conditions. According to Pure Hydrogen Managing Director Scott Brown, this acquisition provides the opportunity for a faster route to commercialization.
“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 per cent when compared with traditional diesel. 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,” said Brown.
Pure Hydrogen views the investment into the H2X Global fuel cell vehicle company as a sound one.
“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,” added Brown.
This investment into the FCV maker is far from unique at the moment. As companies and governments seek to reach climate targets, a growing number of deals, acquisitions, and collaborations have been forming with companies focusing on H2. This fuel is being viewed as a promising opportunity for reducing or eliminating carbon emissions for areas from personal transportation to shipping and industry.
The fuel cell vehicle company is among a growing number looking into the opportunity available in automotive technology powered by hydrogen fuel. Several large automakers such as Toyota and Hyundai have also been pursuing various segments of that market as the world turns to greener alternatives to fossil fuels.