Pure Hydrogen Corporation (ASX:PH2) has finalised a binding agreement to divest its 30% stake in the Serowe CBM project in Botswana to Botala Energy (ASX:BTE), the project’s 70% owner and operator.
In return, Pure Hydrogen will receive 14.5 million fully paid ordinary shares in two instalments, along with a payment of $750,000 if the project’s independently certified gas reserves exceed 50Pj’s of 2P.
These shares will be held in escrow until the end of 2024, increasing Pure Hydrogen’s ownership in Botala Energy to 23.2%.
This transaction enables Pure Hydrogen to streamline its operations and focus on expanding its hydrogen and Hdrive initiatives in the region.
Given the global energy landscape’s shift towards producing cleaner and more sustainable alternatives, hydrogen has emerged as a preferred option with the potential to revolutionise Africa’s energy sector.
Botswana has garnered recognition in recent years for its abundance of renewable energy resources and its potential to play a major role in this transformation.
The deal presents an opportunity to penetrate the African market through a renewed 50:50 Joint Venture with Botala, known as Botswana H2.
“We are excited by the rapid development of Botswana H2. We can very readily bring the best technologies to the Joint Venture in terms of hydrogen fuel production and all the associated transport infrastructure to develop the full value chain from fuel, refuelling infrastructure and commercial vehicles,” Pure Hydrogen Managing Director Scott Brown said.
“Botswana is strategically located in Africa and it is a great market to commence our operations here, underpinned by a government committed to developing clean energy projects. We will update shareholders on the JV’s progress as key events materialise.”
Envisioned as one of the largest in Africa, the Hydrogen Hub in Botswana aligns with the government’s substantial commitment to developing clean energy projects.
PH2 last traded at 10.5c, at 11:30am AEDT.