Fortescue is keeping the hydrogen dream alive – by pivoting to natural hydrogen.
Weeks after announcing hundreds of job losses and a pull-back in its plans to be a champion of man-made (or green) hydrogen, it is putting more than $20 million into natural hydrogen.
Fortescue Future Industries Technologies announced it wanted to take a $21.9 million stake in HyTerra (ASX: HYT), an Australian-based natural hydrogen explorer whose key tenements are in the US.
Fortescue will become HyTerra’s largest shareholder as it moves to test its 100%-owned Namaha project in Kansas.
Small Caps reported the deal was subject to shareholder approval, with 664 million shares to change hands at $0.034 each for a total 39.8% interest, plus 322 million free-attaching options exercisable at $0.051.
‘’Proceeds will be used to fully fund expanded exploration at prospects in several identified geological play areas and to expand HyTerra’s upcoming two-well drilling campaign to six wells,’’ Small Caps said.
Fortescue was one of the earliest to commit to hydrogen as a major plank in global decarbonisation efforts – signing agreements around the world to help produce zero emission hydrogen from sources like solar and wind power. It recently said the cost of man-made hydrogen made it difficult to justify the commitment.
Gold Hydrogen managing director Neil McDonald, head of Australia’s most advanced natural hydrogen explorer, welcomed the transaction.
‘‘It’s fantastic that natural hydrogen is being taken seriously by the big players,’’ he said. ‘‘This can only energise interest in Gold Hydrogen and its South Australia prospects.’’
Gold Hydrogen has confirmed hydrogen with a purity of more than 95% on the Yorke Peninsula and is working on a pilot commercialization project.
The company recently signed a memorandum of understanding with Mizuho (a leading global Japanese Bank). Mizuho has a number of Japanese energy industry clients that are interested in a range of issues associated with the discovery, usage and sustainability benefits of Natural Hydrogen and Helium.
Full story here.