HyTerra bulks up Nemaha landholding after EMG greenlights Fortescue acquisition

HyTerra increases Nemaha acreage by >15% to more than 60,000 acres
Increased landholding will support upcoming significant exploration backed by Fortescue after extraordinary general meeting
Three further well locations approved and site works will start on the Blythe 13-10 location

Special Report: With Fortescue’s 39.66% acquisition now complete, HyTerra has demonstrated its confidence in the Nemaha natural hydrogen project by acquiring ~8000 new acres of ground.

It adds to the 13,000 acres acquired in mid-October 2024, and increases its total lease position to over 60,000 fully owned acres.

This substantially larger landholding will support HyTerra Limited (ASX:HYT)‘s upcoming significant exploration campaign, backed by a $21.9m investment by Andrew Forrest’s Fortescue now sealed in ink after shareholders provided the green light at an extraordinary general meeting on Friday.

The Strategic Alliance Agreement between the pair is directed at progressing the fully owned project while exploring new opportunities across the world, with Fortescue funds already flagged for use in an expanded drilling campaign over Nemaha Ridge.

The company will also have more well locations to choose from for this campaign after the Kansas Corporation Commission approved well permits – Downey Ranch 13-31 in Wabaunsee County, Crome 1-28 in Marshall County and Larson 1-14 in Riley County.

Each prospect is based on existing and recently purchased gravity, magnetic and seismic data.

Preparation of site works and the access road at the Blythe 13-10 prospect location will start this week.

Nemaha sits in the centre of a major industrial and manufacturing hub between Kansas City and Wichita, placing it in proximity to existing railways, roads, and pipelines that connect it to a long list of potential offtakers nearby including ethanol and ammonia manufacturers and petrochemical plants, all of which already use hydrogen in their processes.

Historical exploration wells have confirmed the presence of hydrogen and helium, with some returning up to 92% hydrogen and 3% helium.

Fortescue finance

With the major partner now on deck, Fortescue general manager of corporate development for Latin America Christine Nicolau will join the HyTerra board as representative, and HyTerra executive director Avon McIntyre thanked the board while welcoming Fortescue as majority holder and cornerstone investor.

“We warmly welcome Christine to the board, and believe she will strengthen the board’s skill set with her extensive corporate development experience,” McIntyre said.

“We especially note Christine’s demonstrated track record for exploration and project development growth in new ventures which is a great alignment with the goals of the Company.

“We will be able to utilise her skill set immediately as we look to grow the project portfolio.”

Geneva project update

HYT adds that its partner – Natural Hydrogen Energy – at its 16%-owned Geneva natural hydrogen project in Nebraska has appointed new management that may be better placed to reach critical decision points.

Activities at the project had halted in 2023 after the downhole pump failed during testing in 2023.

The partners are awaiting the provision of key data and metrics to decide on flow testing operations and the work program going forward. This will also determine the viability of this venture.

This article was developed in collaboration with HyTerra, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.