United H2 Limited (UHL) has formed a joint venture with an established hydrogen generator manufacturer in Shenzhen which will provide exclusive global rights to sell hydrogen generators globally.
UHL has executed the deal through one of the companies in its group, Power Hydrogen Generation Limited (PHGL), which now owns 35% of the Chinese production company/manufacturing facility, generator IP and brand PWRH2. UHL will use the PWRH2 brand to sell generators primarily to Australia, the UK, Europe and North America.
The generators will have a power range of up to 135kW — increasing to 1MW in the next nine-to-12 months — which can support large industrial sectors, such as oil & gas, mining, construction, agriculture, manufacturing and other remote communities/sites.
PWRH2 is currently seeking off-takers and country-specific distributors/retailers, as it prepares to begin delivering products to market in Q1 2024.
UHL is targeting $500m in revenues in year three and will seek to take PWRH2/PHGL public on a global securities exchange within the next 24-36 months.
UHL says the deal is a reflection of the world’s largest hydrogen company’s commitment to delivering innovative, clean products on a global scale.
Richard Allen, UHL Chairman, said it recognises the “significant opportunity” hydrogen generators present and has spent the past 18 months looking for a technical partner to access this market.
He said, “In 2021, the overall generator sales market was valued at $26bn and our goal is to provide a right now, clean solution. We believe, through this partnership, we can quickly deliver value to shareholders, as it brings IP, proven manufacturing capabilities and speed to market.”
As hydrogen generators offer one of the only avenues to clean, portable energy, the UHL teams believe this business represents a global opportunity.
Allen added, “Hydrogen is a physical fuel which can be produced onsite or transported. As opposed to battery generators, which require connection to the grid or significant solar/wind infrastructure onsite to be recharged. Hydrogen generators can also be refuelled much more quickly and are not dependent on the grid or unreliable forms of energy such as wind or solar.
“Given the strong commercial use case hydrogen generators present, PWRH2 will target large industries dependent on diesel generators, such as oil & gas, mining, construction, agriculture, manufacturing and remote communities/sites.”
With the first generators expected to be delivered to customers in Q1 2023, UHL says that PWRH2 will form part of its strategy to expand into the target markets, which will add significant value to the Group as it approaches an anticipated Canadian Securities Exchange listing in Q4 2023.
PWRH2 will begin aggressively pursuing customers in target markets, as they are much more advanced in hydrogen infrastructure.
The increased presence in these markets will also play a key role in driving its planned listing.
PWRH2 is also looking for country-specific retailers and distributors to accelerate growth.
Frank Zhang, Managing Director/CEO of PWRH2, said UHL has a remarkable record in delivering hydrogen products to market and developing large-scale businesses.
He said, “We believe our manufacturing capabilities and IP, combined with UHL’s ability to build global companies, will see us develop one of the world’s leading hydrogen generator businesses.”
The UHL team signed the joint venture in China and travelled around the country to review more technologies in a bid to form additional joint ventures, which will allow them to deliver hydrogen trucks, vans, boats and injection kits for internal combustion engines to market and grow the group.