Commercial vehicle importer and distributor BLK Auto has announced it has signed a binding Term Sheet with ASX-listed clean energy company Pure Hydrogen Corporation for the sale and purchase of hydrogen fuel cell electric vehicles and hydrogen as a fuel.
Under the terms of the agreement, the two parties will further progress negotiations concerning the potential for Pure Hydrogen to sell HFCEV buses and trucks to its customers as a ‘wet hire’ on behalf of BLK Auto, with BLK Auto to also provide Pure Hydrogen with the option of selling hydrogen to BLK Auto’s HFCEV end-users.
Pure Hydrogen is an Australian east coast-focused clean energy company with hydrogen, gas and mobility businesses. The company has five hydrogen projects under development and three gas projects, being the Windorah Gas Project in the Cooper Basin, Project Venus CSG in the Surat Basin in Queensland and the Serowe Project CSG in Botswana.
The agreement carries an initial five-year term, with the option of a one-year extension if agreed by both parties, and is anticipated to commence from 1 July 2022.
The agreement remains subject to numerous conditions including due diligence by both parties, whereby the two companies would work together on co-marketing and commercialisation opportunities in the hydrogen transport and infrastructure space.
This agreement will allow BLK Auto and Pure Hydrogen to more efficiently cater to the Australian transport industry’s growing demand for hydrogen-powered fleets.
“I’m excited to reach this agreement with Pure Hydrogen as this continues our solid journey forwards with Hydrogen Fuel Cell Vehicles,” BLK Auto managing director Jason Pecotic said.
“This binding Term Sheet lays the foundation for what we anticipate will become a long-standing and positive partnership between BLK Auto and Pure Hydrogen that will see the rapid take-up of hydrogen fuel cell-powered electric buses and trucks in Australia, and on the East Coast in particular,” Pecotic added..
“We look forward to further finalising these negotiations over the coming period with a view to bringing our aligned objectives to fruition in 2022,” he said.
“We are pleased to be partnering with BLK Auto. This binding term sheet is just the first step in both parties building out a hydrogen eco system and providing our potential customers the greatest range of vehicles possible together with hydrogen fuel. BLK Auto is well known for its Hydrogen Fuel Cell Buses and we have a great opportunity to leverage that expertise for the benefit of both companies,” Pure Hydrogen managing director Scott Brown said.