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Why is the Pure Hydrogen (ASX:PH2) share price having such a stellar run this week?

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The Pure Hydrogen Corporation Ltd (ASX: PH2) share price is in the green this week.

Pure Hydrogen shares are currently swapping hands at 44 cents, up nearly 6% since the start of the week.

Let’s take a look at what’s been impacting the Pure Hydrogen share price since Monday?

New hydrogen deal

Pure Hydrogen is planning to work with a partner to trial Australia’s “first ever” hydrogen-fuelled garbage truck.

The company has signed a binding term sheet with waste collection provider JJ’s Waste & Recycling. Pure Hydrogen will supply the hydrogen-fuelled garbage truck, the hydrogen, and refuelling services.

Given JJ Waste has a fleet of 2,000 garbage trucks, Pure Hydrogen is hopeful it can transition more into hydrogen-fuelled vehicles if the trial is successful.

Pure Hydrogen described the supply of Hydrogen fuel cell-powered heavy commercial vehicles as a “game-changer” for the Australian trucking industry.

Commenting on the deal, Pure Hydrogen managing director Scott Brown said:

We believe this is the start of a new era for heavy commercial vehicles in Australia which will not only reduce and fix fuel costs but be cleaner and greener for the Australian environment. It will also reduce our reliance on imported diesel by replacing it with Hydrogen made in Australia.

We see the business case for converting garbage trucks to hydrogen fuel cell trucks as very compelling and we are confident this trial will be a great success.

The trial will take place on the Gold Coast in southeast Queensland and start at the end of this year.

Pure Hydrogen reported a loss of $807,571 in its half-year accounts, released last week. The company also increased its net cash balance by $2 million.

The company recently signed a binding collaboration with French technology company Plenesys to make turquoise hydrogen. This form of hydrogen is created using technology to convert methane into hydrogen and solid carbon.

The Pure Hydrogen share price has gained 53% in the past 12 months but dropped almost 21% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained around 9% in a year.

Pure Hydrogen has a market capitalisation of about $148 million based on the current share price.

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