The Pure Hydrogen Corporation CDI (ASX: PH2) share price is steaming ahead this week despite being down today.
Pure Hydrogen shares have gained 5% since market close on Friday. Yesterday, the company’s shares surged 8%.
Pure Hydrogen is a clean energy company based on Australia’s east coast. The company is developing five hydrogen projects and three gas projects.
Let’s take a look at what is happening at the company.
Turquoise hydrogen plans
On Monday, Pure Hydrogen informed the market it will go ahead with plans to make turquoise hydrogen. The Pure Hydrogen share price surged by 10% in early morning trade yesterday on the back of this announcement.
The company has signed a binding collaboration and licence term sheet with French technology company Plenesys to commercialise a process known as HyPlasma. This involves breaking down methane molecules in an oxygen-free reaction chamber.
The companies will work together on a pilot plant to be built in Brisbane in the next 12 months.
Pure Hydrogen has been looking into turquoise hydrogen for the past two years and hopes to use the HyPlasma process to prove commercial manufacture of clean energy products including hydrogen and graphene.
As part of the deal, Pure Hydrogen will gain exclusive rights to commercialise the HyPlasma process in Australia and some key countries in South-East Asia and Southern Africa for an initial 10 years.
Commenting on the company’s plans, Pure Hydrogen managing director Scott Brown said:
Our initial programme is focussed on demonstrating and refining the process, before commencing commercial scale operations. It is no doubt there is significant upside for the technology globally.
Turquoise Hydrogen is a cleaner use of natural gas (methane), and graphene has many emerging applications in electronics and high strength, light-weight materials, which is particularly important in the production of batteries, electronic equipment, fabrication and building materials.
As my Foolish colleague Mitch reported, Pure Hydrogen was one of the best performing ASX hydrogen shares in 2021, posting a 511% gain.
In late afternoon trade yesterday, Pure Hydrogen released its half-year results (H1 FY22). Pure Hydrogen recorded a loss of $807,571. This was 1.63% greater than the $794,606 loss in the prior corresponding period.
During the half, Pure Hydrogen entered an agreement to purchase a 24% interest in H2X Global limited in return for 8.6 million shares in Pure Hydrogen.
The company increased its net cash balance by $2 million to $12 million. No dividends were declared.
The Pure Hydrogen share price has been unable to repeat its gains of yesterday so far today. It is currently down 2.41% at 40.5 cents.
Pure Hydrogen share price snapshot
The Pure Hydrogen share price is up 8% in the past 12 months but has plummeted 27% year to date.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained 5% in a year.
Pure Hydrogen has a market capitalisation of $138 million based on the current share price.