Pure Hydrogen eyeing African hydrogen with upcoming ASX lister Botala Energy

Tue 21 Jun 22, 3:07pm (AEST)
A leopard keeping an eye on the horizon
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Key Points

  • Pure Hydrogen will hold a 19.99% shareholding of Botala Energy
  • Botala Energy expects to commence trading on the ASX in mid-late July 2022
  • Move comes as Botala successfully raises $5m in IPO capital raise

Pure Hydrogen (ASX:PH2) has highlighted its 19.99% stake in the issued capital of upcoming ASX entrant Botala Energy expected to commence trading next month. 

On the back of the news, Pure’s shares are up nearly 7% heading into the final hour of trade.

Botala’s flagship project will be Coal Bed Methane (CBM) gas exploration in Botswana at the Serowe project, of which Botala will acquire an additional 21% interest. 

Pure Hydrogen retains a 30% interest. 

Pure Hydrogen notes many of its shareholders have assisted Botala meet its $5m target with the former participating in the capital raise process. 

The company also adds commencement of ASX trading by Botala still requires further approval from Botala itself, and the Australian bourse. 

Pure's three month charts versus the energy index (XEJ)
Pure's three month charts versus the energy index (XEJ)

Any JV hydrogen produced unlikely to be ‘green’

Between the lines, it’s clear Pure Hydrogen and Botala will investigate the logistics of producing hydrogen with gas from Botala’s Serowe CBM project.

This is evidenced by Pure Hydrogen’s note today any hydrogen production facilities constructed in Botswana will likely require significant expenditure. 

Should Pure Hydrogen seek to develop a hydrogen facility in Botswana, leveraging Botala’s CBM project, it is more than likely hydrogen produced on-site will be considered ‘grey.’ 

Whereas ‘green’ hydrogen is that produced by renewables-powered electrolysis, ‘grey’ hydrogen refers to that created by the steam reformation of methane. 

Both companies jointly hold ambitions to develop renewables-based energy in South Africa, at some point in the future. 

At this time, no specific projects or investments have been guaranteed by either entity.

An infographic outlining the manufacturing of different 'colours' of hydrogen (Petrofac)
An infographic outlining the manufacturing of different 'colours' of hydrogen (Petrofac)


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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