Australian East Coast Clean Energy Company Pure Hydrogen Corporation Limited provides further details on the proposed transaction with CAC-H2. Both parties have signed a term sheet after considerable negotiation between the parties. The key terms are:
• Key terms for hydrogen supply and conditions including pricing, delivery, pressure and purity of the Hydrogen;
• Most clauses of the term sheet are non-binding but there is a framework in place to sign binding documents (Including HSA) for each project so it can proceed;
• The contract term of hydrogen supply will be six-years with an option for a further six years;
• Minimum Hydrogen supply of 1,000kg per day per Plant but can be expended by agreement;
• CAC-H2 process involve turning wood waste that would otherwise go into land fill into hydrogen through a gasification process of pyrolysis and then a second stage of separating and purifying the hydrogen gas.
• Pure Hydrogen will operate and build Hydrogen load out and truck refuelers and conducting sales and marketing for the hydrogen. These activities will be funded out of existing funds of the Company. The Company will announce details of each site including plant sizing once binding documents are agreed including relevant funding. It is expected that further announcement on this project will be made in the next month.
The first plant will be built north of Brisbane and is expected to be operational in late 2022 with Melbourne and Sydney to follow in mid 2023. We will continue to update the market on the progress of the plants and expect to have an update on the proven waste to green hydrogen production process in early 2023 Pure Hydrogen is currently engaging with organizations that could use Hydrogen as an alternative fuel source
e.g.: Trucking. If successful, this would demonstrate that Hydrogen is a genuine alternative fuel source.
