Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FSE) announced that its European partner, Exogen Hydrogen Solutions, has signed a memorandum of understanding with a leading European producer and supplier of renewable hydrogen to offer decarbonization solutions for industrial steam, district heating, and mobility applications on the continent.
Lhyfe inaugurated its first green hydrogen production site in 2021 and has five more under construction. It said it plans to achieve 3 gigawatts (GW) of installed capacity of hydrogen production by 2030.
“Green hydrogen has become highly relevant for decarbonizing industrial steam, district heating, and logistics," Lhyfe Vice President of Sales and Business Development Philippe Desorme said.
Atrium Research analyst NicholasCortelluci has a Buy rating on the stock with a target price of CA$0.50 per share.
"By partnering with Exogen, we expect a significant expansion of our green hydrogen production output over time while also opening a completely new market segment for us."
Jericho subsidiary Hydgrogen Technologies' Dynamic Combustion Chamber™ boiler burns hydrogen and oxygen in a vacuum chamber to create high-temperature water and steam with no greenhouse gases or other pollutants. The only by-product is water, which is recycled. It's meant to replace existing boilers that burn coal, natural gas, diesel, or fuel oil.
The Catalyst: A New Type of Ecosystem
Jericho recently announced a partnership with two other companies, Exogen and the Sofinter Group, to build, implement, and service a new complete hydrogen steam plant that can permanently eliminate the CO2 equivalent of about 5,000 cars: the HSP3000.
The partnership between Exogen, which is offering the final integrated product that comes pre-assembled in container-sized units, and Lhyfe "paves the way for a new type of ecosystem and vast markets for green and renewable hydrogen," Lhyfe said in a release.
The product and partnership should also have a positive effect on Hydrogen Technologies' sales in the second half of the year, as the company recently announced its first sale of a DCC™ boiler system to a prominent anonymous university, Atrium Research analyst Nicholas Cortellucci wrote in a research note.
"This (sale) . . . positions JEV as a key industry leader and a first mover in its category," Cortelluci wrote. Cortellucci has a Buy rating on the stock with a target price of CA$0.50 per share.
Another recent Jericho and Hydrogen Technologies announcement also bodes well for the company, Cortellucci wrote. The company is collaborating with a "leading global alcoholic beverage company" to study using the boilers at production facilities in four countries.
"The HSP3000 can also eliminate all NOx, CO2, and other GHG emissions from industrial steam and district heating applications, potentially allowing clients to harvest carbon credits," Cortellucci wrote. "We expect the product launch to expedite sales commitments across various industries, including Pulp & Paper, Food & Beverages, Pharmaceuticals, Industrial Chemicals, and O&G (oil and gas)."
DCC™ boilers are being considered for deployment at major facilities around the world, with feasibility studies being conducted or considered at dozens of locations, the company has said.
Decarbonizing Heat a Big Challenge
Lhyfe's role will be to operate green hydrogen production facilities so the combined products can open new markets for growth in Europe in industrial steam and district heating.
Steam production is a core component of many processes in industries including pulp and paper, food and beverages, pharmaceuticals, industrial chemicals, and oil and gas.
"There is growing demand by multinationals and industrial clusters targeting operating synergies from combining thermal and mobility solutions powered by green hydrogen," Lhyfe said in a release. "The mobility applications are aimed at hydrogen refilling stations for forklifts, vans, delivery trucks, and cars. Thermal solutions include industrial steam, large buildings, and district heating applications."
Decarbonizing heat is the biggest challenge energy markets face, Exogen Chief Revenue Officer Saverio Costanzo said.
"In our mission to decarbonize energy applications, Lhyfe is an ideal partner," Costanzo said. "The future of energy applications is green, and we are right in the middle of it."
On September 12, Jericho reported approval from the U.S. Patent and Trademark Office for the protection of the DCC™ boiler.
Hydrogen Technologies has two further patents pending to protect and enhance the device's novel intellectual property, and the company has begun receiving initial commercial orders.
The company is "excited about the new patent allowance from the USPTO and looks forward to the opportunity to continue to expand its portfolio of IP related to its emission-free industrial hydrogen boiler system," Jericho Chief Executive Officer Brian Willamson said.
A 'Uniquely Versatile Energy Carrier'
According to the International Energy Agency, the world needs more hydrogen technology and projects to meet a net-zero emissions scenario by 2050.
"Faster action is required on creating demand for low-emission hydrogen and unlocking investment that can accelerate production scale-up and deployment of infrastructure," the agency wrote.
The hydrogen market has the "potential for near-zero greenhouse gas emissions," the U.S. Department of Energy said.
"Hydrogen generates electrical power in a fuel cell, emitting only water vapor and warm air," the agency wrote. "It holds promise for growth in both the stationary and transportation energy sectors."
Hydrogen doesn't occur on its own naturally on Earth, despite being the most abundant element in the universe. It needs to be separated from water or hydrocarbon carbons using electrolyzers.
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Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FSE)
It's also a "uniquely versatile energy carrier," according to a report by the Hydrogen Council. "It can be produced using different energy inputs and different production technologies. It can also be converted to different forms and distributed through different routes — from compressed gas hydrogen in pipelines through liquid hydrogen on ships, trains or trucks, to synthesized fuel routes."
Ownership and Share Structure
Around 35% of Jericho's shares are held by management, insiders, and insider institutional investors, the company said. They include CEO Brian Williamson, who owns 1.25% or about 3.1 million shares; founder Allen William Wilson, who owns 0.79% or about 1.97 million shares; and board member Nicholas Baxter, who owns 0.46%, or about 1.14 million shares, according to Reuters.
Around 10% of shares are held by non-insider institutions, and 65% are in retail, the company said.
JEV's market cap is CA$67 million, and it trades in a 52-week range of CA$0.44 and CA$0.21. It has 248.14 million shares outstanding and 178.38 million floating.
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- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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