Go-Ahead Group PLC (LSE:GOG) said it has signed the largest passenger transport green hydrogen supply contract in Europe, with hydrogen-powered buses operating in North Sussex, South Surrey and into and out of Gatwick airport.
The train and bus company, which is London's biggest red bus operator, will receive 20 single-decker buses this summer from Northern Ireland-based Wrightbus, with negotiations ongoing about a further 34.
Go-Ahead is also reported by the Times to be pushing to complete a 15-year green hydrogen supply deal with US-based Air Products & Chemicals, Inc. (NYSE:APD) that would mean the FTSE 250-listed company is highly unlikely to have to pay more for its hydrogen per mile compared to diesel.
The current lack of competitive suppliers and supply makes hydrogen more expensive than diesel, per mile - though the ability of hydrogen buses to run for over 300 miles with quick refuelling makes them favourable to electric buses, which require lengthy recharges and can only last 100-180 miles, said Go-Ahead.
Ed Wills, managing director of Go-Ahead subsidiary Metrobus, believes advantages will accrue in the future when diesel prices rise further, while greater hydrogen supply that should drive its price down.
Go-Ahead shares have been suspended from trading after a delay in the publishing of its full-year results, with the company to face a financial penalty from the Department for Transport after failing to return £25mln to the taxpayer.