BPH Energy’s (ASX: BPH) two investee companies enter into hydrocarbon process agreement

Highlights

• Two investees -- Clean Hydrogen and Onshore Energy -- of ASX-listed BPH have signed a hydrocarbon process agreement
• Onshore Energy holds the rights to gas fields including the Weaber gas field (Onshore Bonaparte Basin, Northern Territory, Australia)
• Clean Hydrogen would process hydrocarbons from Onshore Energy's areas to produce hydrogen and carbon black products

Publicly listed exploration company BPH Energy Ltd (ASX: BPH) has announced that two of its investee companies -- Clean Hydrogen Technologies Corp. and Onshore Energy Pty Ltd -- have entered into a hydrocarbon process agreement. It is pertinent to note that BPH holds an 8% direct interest in the former, while the latter is a fully owned subsidiary of Advent Energy (BPH holds a 36.1% interest in Advent).

The two companies entering into the said agreement have proposed to make plans whereby Clean Hydrogen would process hydrocarbons from Onshore Energy's rights to produce hydrogen and carbon black products.

More on hydrocarbon process agreement

Listed explorer BPH Energy has informed that Clean Hydrogen and Onshore Energy (both are investee entities of BPH) have signed a hydrocarbon process agreement whereby the former entity will be processing hydrocarbons to produce hydrogen and carbon black products from the latter entity's rights pertaining to gas fields including the Weaber gas field.

Notably, Clean Hydrogen is said to have the capabilities to process hydrocarbons from natural gas with no CO₂ emissions in the core process. This produces hydrogen (also called turquoise hydrogen), carbon black and carbon nanotube products. Carbon black -- which in its pure form is a fine black powder -- has application in various industries and sectors including tyres, resin colouring, and paints. It also finds utility as an electric conductive agent of high-technology materials.

BPH announcement mentions that Clean Hydrogen is in the process of developing its “Commercial System”, which is an end-to-end system to consume and process hydrocarbons. Here, the scale and commercial objectives would be satisfied, followed by development of income from the sale of products, says the company.

Besides other material terms of the agreement, the announcement by BPH Energy mentions that the two parties will define and agree on the markets for the sale of Clean Hydrogen products, and that Onshore’s right to go with other plans for use of the hydrocarbons is not precluded.

ASX shares of BPH traded at AU$0.021 (market cap over AU$21 million) at the time of writing on 3 July 2023.