HXG seemingly trying to get a bit of air into the recently deflating tires of their SP (rather inexplicably deflating to my mind) with an announcement today that they'll make an announcement of the feasibility of the Pedirka clean hydrogen project in February. Save me.
Whether the result of the announcement or not price is up 10% right now. Desperately weird thing this market we play in. Key elements of the "announcement" are below including some classic examples of saying absolutely nothing!.
Disc: Held here and in my SMSF.
Hexagon’s Clean Hydrogen Project Pre-Feasibility Study Completion Date set for February 2022
Key Highlights:
- The final stage of work for Hexagon’s Pre-Feasibility Study (PFS) for its Northern Territory “Pedirka” Hydrogen Project has now been defined and agreed with a completion date set for 28 February 2022.
- The final stage in completing the PFS will be expanded to allow for the assessment of a range of potential project improvement opportunities that were identified as part of the PFS to date.
The PFS work to date clarified the critical success factors for any clean hydrogen project development by Hexagon. These are:
- Access to commercially proven, at scale hydrogen carrier production technology e.g., Ammonia;
- Having the capacity to leverage pre-established port and transportation infrastructure for end- product export and in modular plant and equipment import, and ensuring project site proximity to this port;
- Access to pre-established long term capacity Carbon Capture and Storage (CCS) reservoirs and associated infrastructure, ideally multiple sites, creating competitive tension and pricing on CCS costs or charges;
- Sustainable access to multiple, large scale, low-cost energy sources, both for use as plant feedstock and for the energy to convert feedstock to hydrogen or a hydrogen carrier. This includes access to large-scale low-cost renewables. This would lead to a reduction in carbon emissions, materials handling and transportation, driving costs down;
- Environmentally and socially responsible and sustainable access to water;
- Best practice stakeholder engagement, including with landowners and communities;
- Binding long-term end customer offtake contracts, ideally as part of strategic project partnership;
- and
- Having a robust, de-risked commercial project returns profile to underpin the securing of project
- development financing through to Final Investment Decision (FID).
The Hexagon Board is focused on establishing the best way forward for Hexagon to deliver its Clean Hydrogen strategic objectives, ensuring that all of the potential improvement opportunities that have been identified through the PFS are thoroughly assessed and, as appropriate, incorporated in the PFS recommendations delivered on completion.
Hexagon’s ultimate goal is participation in the large, global, emerging clean hydrogen market to deliver large quantities of clean hydrogen into Asian markets. Achieving this objective will deliver substantial value for shareholders and establish a strong foundation on which we can grow a substantial business.
What is critically important for Hexagon is that a lowest risk (technically and commercially) and lowest cost clean hydrogen project, with the highest potential for commercial success, is progressed as a result of the PFS.
