PERTH (miningweekly.com) – ASX-listed Pure Hydrogen has unveiled plans to fast-track the development of the turquoise hydrogen project.

The company has entered into an agreement with Turquoise Group (TG) which will invest A$1.6-million and assume management of the turquoise hydrogen project, targeting the commercialisation of the methane pyrolysis technology being developed in collaboration with French plasma technology company Plenesys.

Further funds will also be raised for a commercial module to be progressed in 2024.

Pure Hydrogen told shareholders on Thursday that the company would retain a 40% interest in TG for the first three-and-a-half years via a non-dilution mechanism and maintained the right to appoint a representative to the TG board.

Pure Hydrogen also has the exclusive right to purchase all hydrogen produced by TG in Australia, for a period of 20 years. The hydrogen pricing mechanism is on an agreed benchmark price linked to the value-add of the carbon products, where the increased value of associated carbon products will result in a lower net hydrogen manufacturing cost saving, benefiting Pure Hydrogen.

“We are pleased that the turquoise hydrogen project is funded to accelerate the next phase of the turquoise hydrogen manufacturing facility in Australia,” Pure Hydrogen MD Scott Brown said.

“Pure Hydrogen will be carried while still maintaining a 40% undiluted shareholding for three-and-a-half years, thus maintaining healthy upside exposure to this unique development project, which will include future access to low-price hydrogen within Australia produced with net-zero carbon emissions.

“Pure Hydrogen will have rights to buy all of the hydrogen offtake produced and not consumed by TG. This agreement is testament to the potential value of the development assets, and the A$1.6-million in funding is expected to provide sufficient capital to mature the project,” said Brown.

He noted that Pure Hydrogen’s ability to purchase all future Australian hydrogen produced by TG helped secure the company’s future as a low-cost hydrogen supplier of choice to Australian customers in the transportation and industrial sectors.

“The agreement is in line with the company’s partnering approach where we seek to unlock value by taking equity stakes in hydrogen-focused technologies and businesses, thus reducing capital expenditure and shareholder dilution, as well as maintaining a focus on 100%-owned company opportunities such as the development of hydrogen-powered commercial fleets and hydrogen hubs,” he added.