Australia-based Pure Hydrogen Corporation has entered an arrangement with PepsiCo Australia to trial a hydrogen-fueled prime mover at one of PepsiCo’s manufacturing sites in the City of Brisbane. Pure Hydrogen will supply PepsiCo with a Hydrogen Fuel Cell 160kW 6 x 4 Prime Mover (HFCV Prime Mover). The company will also provide additional hydrogen fuel as required, including refueling along with arranging repair & maintenance services.
Artist impression of a PepsiCo-branded hydrogen prime mover, supplied by Pure Hydrogen.
The trial will commence in 2Q 2023 and will run for approximately 6 months. Following the trial PepsiCo will assess the commercial use-case with the potential to order further hydrogen powered vehicles over the period 2023-25.
The PepsiCo trial marks the latest in a number of trials that Pure Hydrogen is undertaking in the domestic marketplace. Its other partners include JJ Waste & Recycling, which is scheduled to trial Australia’s first Hydrogen Fuel Cell Refuse Collection Vehicle (HFCRCV). The trial also forms part of Pure Hydrogen’s broader market strategy to demonstrate the commercial use-case of affordable hydrogen and hydrogen fuel cell vehicles.
Pure Hydrogen is working to establish itself as not only a supplier of hydrogen-fueled trucks, buses, hydrogen generators and storage pods, but also as a supplier of hydrogen fuel.
Under the Term Sheet framework, Pure is expected to receive $98,400 (excluding GST over the trial term of six months (with a minimum amount of $17,400 excluding GST) for the supply of the single HFCV Prime Mover. If the trial is successful, the Term Sheet gives PepsiCo an option to lease the Hydrogen Prime Mover from Pure Hydrogen at monthly fee of $10,554.40 excluding GST over a potential 7-year term.
Pepsi may choose to keep the truck at the end of the trial; if that is the case, Pepsi will be responsible for the truck and payments for it. If Pepsi chooses not to take the truck at the end of the trial, Pure will use the truck with another potential customer.
Pure Hydrogen expects its net cost of this initiative will be about $410,000 for the trial which if successful creates a growing hydrogen clean energy market.