Pure Hydrogen (ASX:PH2) has executed a Convertible Note Purchase joint venture (JV) funding agreement with CAC-H2 to partially fund the construction of a hydrogen power plant in Moreton Bay, Queensland during 2023.
The company says it intends to expedite the plant development in order to secure hydrogen offtake for supply to customers in south-east Queensland during 2024, in order to support its goal of expediting the hydrogen hub strategy for Australian and overseas markets .
Adding on, Pure Hydrogen notes the plant will deploy technology that produces hydrogen from conversion of woody biomass that would otherwise be burnt or dumped in a landfill. The plant has also been planned for construction in the Moreton Bay area as it represents the initial facility in a proposed network of hydrogen energy hubs to be developed by Pure and CAC-H2 across the nations east coast.
“With this funding, Pure Hydrogen is seeding what is likely to be the first of many plants located on the East Coast of Australia”
Terms of the JV agreement include Pure Hydrogen initially funding 25% of the construction of the Biomass Waste to Hydrogen Plant at a cost of $3.2 million, with an option to fund a further 25% of the project at its discretion.
Development approvals are currently advancing.
Commenting on the JV agreement Pure Hydrogen Managing Director Scott Brown said: “This funding agreement marks an important step forward for the Moreton Bay Hydrogen Hub and has been executed within the timeline that was previously set out between the parties. Pure Hydrogen looks forward to providing more updates over the course of 2023 with respect to its Hydrogen Hub development strategy, as it establishes a first-mover advantage in the production and distribution of hydrogen in the Asia-Pacific region.
With this funding, Pure Hydrogen is seeding what is likely to be the first of many plants located on the East Coast of Australia. We are creating a template that can be easily replicated across multiple sites and this will become evident as the year unfolds.”
The company also notes CAC-H2, as well as its technology partner Renewables Plus, have developed and tested a similar system, and have successfully converted woody biomass to hydrogen, which provided support for the fruition of this JV agreement between both parties.
With the JV agreement now executed, Pure Hydrogen announces the funds will be provided in tranches over the next 12 months, and that each note issued under the Convertible Loan Agreement will be secured by way of a General Security Deed. These notes are reported to be ranked above all other present and future unsecured and unsubordinated debt of the company, and all shares and other equity securities on the issue in the company.
Pure Hydrogen is an ASX-listed clean energy-focused company working to achieve its goal of becoming a leader in the development of hydrogen and energy projects through the use of cutting-edge technology processes. The company’s current mission is to supply hydrogen fuel to both Australian customers and Asia Pacific markets through the production of Green, Emerald, and Turquoise hydrogen.