The Pure Hydrogen Corporation CDI (ASX: PH2) share price is surging today following an update on its H2X Global transaction.
During mid-afternoon trade, the energy company's shares are up 8.60% to a multi-year high of 50.5 cents.
What did Pure Hydrogen announce?
Investors are pushing Pure Hydrogen shares higher on news of the company's positive release.
In a statement to the ASX, Pure Hydrogen advised that it has completed the transaction of H2X. This means that the company now holds a 24% interest in H2X Global with options to increase its ownership to 48%.
H2X is a hydrogen-powered vehicle manufacturer that is currently building Australia's first hydrogen fuel cell cars. The company aims to market everything from all-electric utes, SUVs, vans and minibuses.
In addition to the update, H2X signed a memorandum of understanding (MoU) with the Economic Development Corporation (SEDC). The latter is an arm of the State Government of Sarawak, Malaysia.
Under the framework, H2X will establish a joint venture with SEDC Energy to produce long haul vehicles. However, in the near term it will begin with the assembly of utes to city buses, and also H2X hydrogen powered generators.
This follows the decision by the Sarawak government which first introduced hydrogen powered vehicles in 2019. The agreement could further lead to H2X supplying and assembling more vehicles including buses to meet the growing demand.
H2X CEO Brendan Norman commented:
Sarawak was already well ahead of most States in the region and was well advanced establishing long term hydrogen production for both domestic and export markets.
We are been honoured to be selected to work with SEDC. It is likely that Sarawak will not only produce vehicles for its own use but will become a major supplier to other States in Malaysia and countries in the region.
Pure Hydrogen share price summary
Since the beginning of 2021, Pure Hydrogen shares have taken off, accelerating by more than 470%. When zooming out to the last 12 months, its shares have further accelerated to a gain of 515%.
Pure Hydrogen presides a market capitalisation of around $158.5 million, with more than 313.8 million shares on hand.
