Pure Hydrogen advances Hydrogen Hub strategy with Moreton Bay land acquisition.
Australian Clean Energy Company Pure Hydrogen Corporation Limited (ASX: PH2 or ‘Pure Hydrogen’) advise it has secured the option to acquire 21 ha of land to establish emerald hydrogen manufacturing facilities with Joint Venture partner CAC-H2.
The site is a 21-hectare lot, adjacent to the Beerburram State Forest. The site was selected due to its strategic proximity to high-population SEQ regions, facilitating the supply of clean and affordable hydrogen to customers from the Sunshine Coast down to the Gold Coast.
Under the terms of the Joint Venture, CAC-H2 will produce the hydrogen through the deployment of a technology process (see page 11 of the presentation Moryton Bay Hydrogen Hub) which converts Hydrogen from woody bio-mass that would otherwise end up as landfill.
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Pure Hydrogen will then take responsibility for distribution and sales. The option marks a key step forward in both parties’ stated commitment to build a network of hydrogen energy hubs on Australia’s east coast (refer ASX Announcement 9 November 2021).
Scott Brown, Pure Hydrogen Managing Director, commented:
We are very excited to have secured this site in Bracalba, which is an ideal fit location-wise with our broader joint venture strategy to establish east coast hydrogen hubs providing clean H2 to growing markets.
“The JV plans at the site reaffirm the commitment of both Pure Hydrogen and CAC-H2 to establish as leaders in the fast-growing hydrogen industry towards Australia’s clean energy transition. We look forward to working with CAC-H2 and local regulators to expedite construction and development of the first plant by the end of CY2023 with it being operational from the start of 2024.”
Commercial Terms
Pursuant to the Option Deed, Pure Hydrogen has paid $125,000 as an option fee and holds the right to transfer a further $1,875,000 to complete the purchase for a total consideration of $2m within 12 months it may be extended for a further 6 months with a further payment of $60,000.
The option has been structured in such a way that allows the Company to progress with project approvals for on-site construction. Also, in accordance with the Term Sheet CAC-H2 will lease approximately 1.5 ha of the property for $55,000 per annum + CPI and allow to build a plant on the site.
The Term Sheet with CAC-H2 is subject to customary Condition Precedents such as the relevant regulatory approvals, and the provision of investment funding by CAC-H2 for a green Hydrogen Plant. The partners aim to have Hydrogen with a 99.97% purity.
Pure Hydrogen will fund the storage and load-out for hydrogen production separately. The Company forecasts a target spend of $5 Million for its share of the plant development costs, which it expects to fund out of existing cash reserves and look to bring in a partner for the land acquisition.
Please note: the timelines referred to in this announcement are the best estimate at this time and subject to change, as there are aspects outside the Company’s control, such as government approvals which may change the timelines.
About Pure Hydrogen Corporation Limited
Pure Hydrogen is a clean energy focused company seeking to become the leader in the development of Hydrogen and Energy Projects through the use of cutting-edge technology processes. It plans to supply hydrogen fuel to both Australian customers and regional Asia Pacific markets, through the production of Green, Emerald and Turquoise Hydrogen.
Concurrently, the Company is developing natural gas projects directly in Australia and Botswana and through a strategic investment it holds in a Botswana- focused energy company listed on the Australian Securities Exchange. Strategically, Pure Hydrogen will also prioritise incubation for early-stage companies or projects
About CAC-H2 Pte Ltd
CAC-H2 Pte. Ltd. is a Singapore headquartered company which has compiled an advanced team who lead in the gasification sector primarily in Carbon removal, Renewable fuel, and Green Hydrogen production. The Group now has 5 projects in Australia for domestic hydrogen production and 3 green ammonia hubs under development for export to Asia.
Highlights:
- Pure Hydrogen has secured an option to acquire 21ha of land in Bracalba, in South-East QLD (about 70 km NW of Brisbane CBD) as the site for Emerald Hydrogen manufacturing and distribution facilities with Joint Venture partner CAC-H2;
- The facilities will serve customers across the SE region of Queensland – from the Sunshine Coast to the Gold Coast;
- The first plant planned for early in 2024, will initially produce 500kgs per day of hydrogen rising to 2,500kg per day. The site can handle additional plants as needed to supply a growing H2 market;
- The feedstock for the Waste to Hydrogen plant will come from nearby logging waste;
- Pure Hydrogen will manage Hydrogen compression, distribution and sales from the facility
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Pure Hydrogen advances Hydrogen Hub strategy with Moreton Bay land acquisition, Sydney November 9, 2022
