Pure Hydrogen (ASX:PH2) share price leaps 9% as first plant set to be operational next year

The company's shares are closing in on its multi-year high of 83 cents…

Hydrogen bubble in blue

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The Pure Hydrogen Corporation Ltd (ASX: PH2) share price is surging today, buoyed by positive developments for the company's hydrogen plants. 

During mid-afternoon trade, the energy company's shares are up 9.42% to 75.5 cents. This means that its shares have risen to an astonishing 70% in the space of just one week.

What did Pure Hydrogen announce?

Investors are pushing Pure Hydrogen shares higher on news of the company's positive release.

According to the update, Pure Hydrogen provided more details regarding the term sheet signed with CAC-H2 on Tuesday.

Pure Hydrogen is seeking to build its presence across the east coast of Australia with three new waste hydrogen plants. The facilities will be constructed in the country's three most populous cities, Sydney, Melbourne and Brisbane.

The first plant will be built north of Brisbane and is expected to be operational sometime in late 2022. The remaining plants in Melbourne and Sydney will be completed around mid-2023.

The key terms of the deal will see the minimum hydrogen supply of 1,000 kilos per day for six years. This can be expanded upon agreement, and there is an additional option to extend the contract for another six years.

CAC-H2 process will involve turning wood waste into hydrogen through a gasification process of pyrolysis. A second stage then follows which separates and purifies the hydrogen gas.

Pure Hydrogen will operate the plants, and undertake sales and marketing activities for the sale of hydrogen.

It is expected that further details in relation to each site and plant size will be released within the next month.

Pure Hydrogen share price summary

Since the beginning of 2021, Pure Hydrogen shares have taken off, leaping by more than 780%. When zooming out to the last 12 months, its shares have further accelerated to post an incredible gain of 860%.

Based on today's price, Pure Hydrogen commands a market capitalisation of around $243.25 million, with approximately 313.88 million shares outstanding.

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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