The Pure Hydrogen Corp Ltd (ASX: PH2) share price is fluctuating in morning trade, gaining 2% before dipping to its current level of 25 cents a share, down 2% on last Thursday's close.
We take a look at the latest announcement from the ASX energy share below.
What did Pure Hydrogen report?
Pure Hydrogen shares are moving today after the company reported it has reached a term sheet agreement with Synergen Met Pty Ltd for a 50/50 Joint Venture (JV).
The new JV will use Synergen's methane decomposition module to manufacture "turquoise hydrogen gas and value add carbon products" from methane at Pure Hydrogen's 100% owned Venus coal seam gas (CSG) Pilot in Queensland.
Each module (initially there'll be 1) can produce approximately 1,400 kilograms of hydrogen and 4,200 kilograms of value-add carbon product if they're run around the clock.
The modules come in standard 12 metre shipping containers. Pure Hydrogen highlights this will enable them to become fully operational quickly and also enable the JV to place additional modules in areas with enough methane to "support the growing domestic and international hydrogen markets".
According to the release, Synergen's technology uses a "propriety plasma pyrolysis process" to decompose methane into hydrogen and solid carbon products. The process has the potential to emit virtually no greenhouse gases, if the electricity is provided from renewable sources.
Commenting on the JV agreement, Pure Hydrogen's Managing Director Scott Brown said:
This is a very promising commercial development for Pure Hydrogen and for Synergen as we are combining proven technology with a methane resource to produce hydrogen and solid carbon products, which potentially adds another valuable revenue stream to Pure Hydrogen's business and an exciting technology angle to Pure's Strategy.
Pure Energy stated that the JV will reinforce its strategy to build a series of hydrogen storage and distribution hubs.
Pure Hydrogen share price snapshot
Pure Hydrogen shareholders made out well over the past 12 months, with shares in the ASX energy company up 390%. By comparison the All Ordinaries Index (ASX: XAO) is up 34% in that same time.
Year-to-date the Pure Hydrogen share price is up 172%.
