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Real Energy (ASX:RLE) share price rockets 27% on hydrogen merger

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The Real Energy Corporation Ltd (ASX: RLE) share price is storming higher today as the company announced an update regarding its future. Shares in the company were trading 26.51% higher at close today. Taking the Real Energy share price to 11 cents.

Pure Hydrogen transition

Real Energy today announced it would be undertaking a merger with Strata-X Energy CDI (ASX: SXA). The anticipated completion date of the merger is March 9, with the new ticker code expected to be ‘PH2’.

The directors of both companies decided to change the name to Pure Hydrogen to better reflect its goal of becoming a large hydrogen business. Notably, the company has already progressed on several fronts in developing its hydrogen division. Nonetheless, natural gas remains a significant focus for Pure Hydrogen and the company plans to continue to pursue its development and production. The company is also investigating natural gas to hydrogen as one of its potential hydrogen manufacturing initiatives.

Projects underway

Pure Hydrogen, through its subsidiaries, is now progressing five hydrogen projects. Located across Queensland, Victoria, and NSW. All hubs are being identified as prime locations for Pure Hydrogen’s expansion into cutting-edge hydrogen manufacturing and fuel-cell technology.

Moreover, the new company is also advancing potential ‘turn key’ technology and engaging distribution logistics experts. Further updates in this regard will be provided by the company as soon as these agreements are finalised.

As well as hydrogen the the new company will continue to aim to add value through natural gas. As such, on this front it maintains three projects. Two located in Queensland with one being housed overseas in Botswana. However it must be noted that the Pure Hydrogen’s Botswana project is currently being farmed out in exchange for funding. When the project is completed it will retain a 51% working interest in the project. During 2021, 3 to 6 test wells are planned within Pure Hydrogen’s high grade coal seam gas areas.

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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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