Pure Hydrogen (ASX:PH2) share price rockets 25% amid major plant production news

The company is pushing ahead with its growth plans.

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male worker in hi-vis checking the balance of the hydrogen tanks

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The Pure Hydrogen Corporation Ltd (ASX: PH2) share price is leaping to a multi-year high on Tuesday. This comes after the company announced it will establish a presence on the east coast of Australia.

During the first hour of trade, the energy company’s shares touched a high of 70 cents, before some profit-taking occurred. At the time of writing, its shares are now swapping hands for 69 cents, up 25.46%.

Pure Hydrogen moves ahead on exciting strategy

Investors are driving up Pure Hydrogen shares today following the company’s latest development.

In its release, Pure Hydrogen advised that it has signed a term sheet with CAC-H2 to build waste hydrogen plants. The facilities will be constructed in the country’s three most populous states, New South Wales, Victoria and Queensland.

The first plant is scheduled to be built in Queensland and is expected to be online in late 2022. It will produce high purity green hydrogen that can be used for fuel cell vehicles and the mobility sector.

Under the arrangement, CAC-H2 will fund, build, and operate the plants whilst Pure Hydrogen will fund storage and loadout. The planned sites will not only bring new jobs to each of the states but also support Australia’s path to decarbonisation. The country has a net-zero goal by 2050.

Pure Hydrogen managing director, Scott Brown commented:

We are very excited to be partnering with CAC-H2 and establishing facilities to service the East Coast of Australia supplying hydrogen fuel. We are pulling all facets of the supply chain together to deliver a complete solution for commercial and industrial users. We will continue to develop our existing projects and the partnership with CAC-H2 which will allow us to bring forward hydrogen supply coverage to the east coast more rapidly.

Currently, the company is working with commercial users to supply hydrogen fuelling through off-take agreements and vehicle supply contracts. It is also pursuing other channels to develop and strengthen its hydrogen fuel supply chain.

Pure Hydrogen share price summary

Over the past 12 months, Pure Hydrogen shares have accelerated to post a gain of almost 741% for investors. When looking at year-to-date, its share price performance is just as impressive, up 684% for the period.

Pure Hydrogen commands a market capitalisation of roughly $216.57 million, with approximately 313.88 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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