These ASX stocks want a piece of the $US300 billion hydrogen sector
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Green hydrogen is the ‘holy grail’ of a net zero emissions future.
Just as lithium-ion and VRFBs are ideally suited for electric vehicles and stationary storage, green hydrogen can be used to clean up ‘dirty’ industries like steel production, manufacturing, long haul trucking, and shipping.
Right now green hydrogen – which burns cleanly and emits only water – is too expensive to make and distribute, but costs are falling.
A recent Australian National University report estimated Australia could currently produce green hydrogen for about $3.18-3.80/kg.
By the end of the decade, it would fall to ~$2/kg – making it cost-competitive with fossil fuels, ANU says.
Globally, there are now 228 large-scale projects for a combined $US300 billion of proposed investment through to 2030, according to the Hydrogen Council.
$US80 billion of this is in advanced planning, has passed a final investment decision or is under construction or commissioned.
ASX juniors are pouring into space to take advantage of this bullish sentiment. If the 2020s is going to be ‘the decade of hydrogen’, then these are some of the stocks to watch.
Until very recently Hazer was the only pure play hydrogen stock on the ASX.
Its ~$17m, low emission Commercial Development Project (CDP) in WA will produce 100 tonnes of hydrogen a year when commissioned in October this year.
With any luck the CDP will demonstrate to deep-pocketed financiers and partners that the Hazer Process works well. After that, the focus becomes building larger, more profitable projects.
The former rare earths-gold explorer acquired a hydrogen project in the Northern Territory late last year.
The Pedirka project will use a surface gasification plant to produce ‘blue’ hydrogen from coal for export and domestic markets with zero carbon emissions, the company says.
A pre-feasibility study for the project – a proper look at whether it is economic or not — is the next step.
The cashed-up minnow says it has designed a ship to carry compressed hydrogen to regional markets.
The 2,000-tonne capacity, hydrogen powered C-H2 vessel is simple, efficient and has low technical barriers to commercialisation, GEV says.
An early stage scoping study on the project will be delivered this quarter.
Previous iterations as a furniture assembly business (AssembleBay) and vanadium explorer (ScandiVanadium) did not get investors’ pulses racing, but it looks like Province has turned the corner.
The minnow has just acquired the Gascoyne and HyEnergy projects in WA’s north-west — a veritable ‘grab bag’ of commodity opportunities.
An initial focus will be on renewable green hydrogen. Investors loved the news and sent the stock soaring.
“Green hydrogen will be an increasingly important future energy source, developing alongside the lithium industry,” says project advisor Gavin Rezos.
“Rapid advances in hydrogen fuel cells are now demonstrating that green hydrogen will have a major role to play in the areas of mass transport, shipping, trucking, and eventually in homes, helping the world reach targets of being net zero carbon by 2050.”