Pure Hydrogen sells 30% interest in Serowe CBM project to Botala Energy

Australian clean energy company Pure Hydrogen Corporation Limited (ASX: $PH2) has entered into a binding agreement to sell its 30% interest in the advanced Serowe CBM project in Botswana to 70% owner and project operator Botala Energy Limited (ASX: $BTE). In exchange, Pure Hydrogen will receive 14.5 million fully paid ordinary shares and a milestone payment of $750,000 over 2 tranches. This transaction will increase Pure Hydrogen's shareholding in Botala to approximately 23.2% subject to shareholder approval.

Executive Commentary on the Transaction

Converting our 30% interest in Serowe into an increased shareholding in Botala strengthens our equity interest in what is an excellent company and allows us to simplify our activities and focus our efforts and funding commitments to our hydrogen business including Hdrive. We have effectively minimised and limited our funding for this project but still maintained an upside exposure to the Serowe Project through our shareholding in Botala. 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. 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.

Summary of Pure Hydrogen's Announcement

Pure Hydrogen Corporation Limited has finalized the sale of its 30% interest in the Serowe CBM project in Botswana to Botala Energy Limited. This strategic move allows Pure Hydrogen to simplify its activities and focus on expanding its hydrogen and Hdrive operations, while maintaining an increased shareholding in Botala. The company aims to leverage its partnerships and operations in the Australian hydrogen sector to develop the Botswana H2 joint venture, focusing on establishing a hydrogen and renewables joint venture to manufacture, store, market, and distribute hydrogen and clean energy in Southern Africa. The joint venture parties will initially focus on developing the Serowe Hydrogen Hub. The transaction signifies a rational separation point for both companies, allowing them to focus on their core objectives. Pure Hydrogen remains committed to developing hydrogen production and refuelling hubs, and the supply of commercial vehicles and hydrogen-powered generators. The company plans to update shareholders on the progress of the joint venture as key events materialize.