The Pure Hydrogen Corporation CDI (ASX: PH2) share price is surging higher on news the company is branching into hydrogen-powered vehicles.
Pure Hydrogen is acquiring an interest in a hydrogen fuel cell company and plans to make hydrogen-powered trucks and buses for use on Australian roads.
The announcement has spurred excitement from a market that’s recently been spoilt for hydrogen news.
At the time of writing, the Pure Hydrogen share price is 30 cents, 5.17% higher than its previous close.
Let’s take a closer look at what could be the future of Australia’s transport industry.
Pure Hydrogen branches into transport
The Pure Hydrogen share price is gaining after the company announced it’s acquiring a 24% stake in H2X Global Limited.
H2X is a hydrogen-powered vehicle manufacturer with plans to sell hydrogen fuel cell electric utes, vans, SUVs, and minibuses in Australia in the coming years. It’s also developing a range of industrial vehicles.
Together, the companies plan to bring hydrogen-powered trucks and buses to Australia. Pure Hydrogen will be the preferred supplier of H2X’s hydrogen fuel cell powered vehicles.
Additionally, Pure Hydrogen plans to establish Pure X Mobility Pty Limited. Pure X Mobility aims to bring trucks for back-to-base operations such as garbage disposal and concrete delivery to Australia.
Pure Hydrogen’s managing director Scott Brown said of the company’s plan:
These industries are logical ‘starters’ for Pure X Mobility as they are short run operators where refuelling can be managed at back-to-base locations. Targeting sectors where we can rapidly bring heavy vehicles to market will be Pure X’s focus and makes logical commercial sense.
Pure Hydrogen has already begun working with truck and bus manufacturers.
The company is planning to announce several off-take and supply arrangements shortly. It also plans to release news of additional partners to help the development and commercialisation of its hydrogen solutions.
As the Motley Fool Australia recently reported, hydrogen could potentially decarbonise an extra 15% of the global economy.
Further, Fortescue Metals Group Limited‘s (ASX: FMG) green-energy subsidiary, Fortescue Future Industries, is working to create one the world’s largest hydrogen equipment manufacturing facilities in regional Queensland.
Pure Hydrogen share price snapshot
The Pure Hydrogen share price has been soaring alongside many of its ASX-listed hydrogen-focused peers lately.
Including today’s gains, it’s about 30% higher than it was at the start of October. It has also gained a whopping 240% since the start of 2021.