Hydrogen is being considered as a promising fuel of the future due to several key attributes besides having the potential to provide Clean Energy solutions.
With global focus on reducing carbon emissions and transition towards Sustainable Energy Sources, hydrogen is increasingly seen as a vital component in achieving these goals.
According to the International Energy Agency (IEA), investments in hydrogen projects are projected to reach A$629 billion by 2050 (Source: IEA, Global Hydrogen Review 2021).
HyTerra Limited (ASX: HYT)
HyTerra Limited reportedly acquired additional exploration leases for its Nemaha Project in Kansas. This expansion increases the company's net exploration lease acreage from 9,607 to 12,720 acres. The new leases, situated in Wabaunsee County, are geologically contiguous with the Sue Duroche 2 well (2009), which has documented occurrences of up to 92% hydrogen and 3% helium. These leases are supported by an airborne geophysical survey conducted by HyTerra in 2023, as well as existing seismic data.
The company experienced a notable expansion of its asset base during fiscal year 2023, as illustrated in the chart above. This growth in assets led to a substantial increase in book value for shareholders, supported by the company's minimal debt position.
HyTerra Limited plans to advance on key growth catalysts in 2024. It continues to execute its strategy of expanding leasing areas, with over 3,000 net acres recently leased, increasing the Nemaha Project lease holdings by more than 30%. Further leasing of high-priority acreage is planned, alongside the drilling of two exploration wells in Q3 2024, with an estimated cost of approximately $2 million. Additionally, in Q4 2024, the company plans to acquire geophysical data which is expected to incur a modest expenditure of $0.5 million. These significant exploration activities aim to advance resource evaluations and support the company’s long-term commercialization strategy for natural hydrogen and helium resources. HyTerra also continues to explore new growth opportunities.
HyTerra maintains promising commercialization plans for white hydrogen, which offers significant disruptive potential due to its highly favorable characteristics for both consumers and producers, including the lowest production costs and carbon emissions among other energy sources.
Pure Hydrogen Corporation Limited (ASX: PH2)
Pure Hydrogen Corporation Limited executed a term sheet with the City of Newcastle for the lease of a rear-loading hydrogen fuel cell (HFC) waste collection vehicle to be supplied by Pure Hydrogen subsidiary Hdrive International.
Earlier, the company had successfully delivered two EV70 mini-buses to Sapphire Coast Buslines in New South Wales, as per the terms of its original supply agreement. This sale generated approximately $700,000 in revenue and was completed within the specified development timeline before the end of Q1 CY2024, following a rigorous testing phase conducted in accordance with Australian Design Rules (ADR) standards.
The company's primary hydrogen production plans are particularly noteworthy, featuring low-capex development options that promise robust returns in the near term, with production slated to commence within 2024
Pure Hydrogen demonstrates strong potential for significantly enhancing shareholder value in the coming years, with key growth initiatives underway that will help the company establish a leading market presence in the highly promising Hydrogen Industry. These initiatives are expected to create substantial growth opportunities for the company and its stakeholders.
Sources - Company Reports
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