A look at recent updates shared by ASX-listed hydrogen companies

Highlights:

• A study by ARENA (Australian Renewable Energy Agency) indicates the potential demand of hydrogen by 2040.
• Hydrogen, in Australia, is mainly used as a raw material for industrial processes.
• This piece discusses the updates shared by AGL, FHE, HZR, PH2 and SPN.

Hydrogen is a chemical that can be produced as liquid or gas. It can be used as fuel for heating or transport, as a raw material in industrial processes and for even storing electricity.

In Australia, the main use of hydrogen is as a raw material. Renewable hydrogen would assist Australia in reducing emissions in high-temperature industries and the transport sector, informed Australian Renewable Energy Agency (ARENA).

Research by ARENA indicates that the annual demand for hydrogen exported could be more than 3 million tonnes by 2040. By that time, the yearly worth could reach approximately AU$10 billion.

This article discusses recent updates shared by these ASX-listed hydrogen companies - AGL Energy Limited, Frontier Energy Limited, HAZER Group Limited, Pure Hydrogen Corporation Limited and Sparc Technologies Limited.

AGL Energy Limited (ASX:AGL)

Established in 1837, AGL is an integrated essential service provider that offers 4.2 million telecommunications and energy services to wholesale customers, small and large businesses and residential customers across Australia.

The company claims to operate the largest electricity generation portfolio in Australia, and it accounts for around 20% of the total generation capacity within the National Electricity Market.

Recently (29 September 2022), the company shared its intent to accelerate decarbonisation pathways and play a leading role in the energy transition. AGL said that it aims to exit from coal-fired generation by the end of the financial year 2035 (FY35). To achieve this aim, the company announced that it targets to close Loy Yang A Power Station almost ten years earlier than the previously targeted date.

If the company achieves its targeted closure date, its greenhouse gas emission is expected to decline from 40 million tonnes to net zero.

In a statement, the company said that it is aiming to reshape its energy portfolio into a flexible and cleaner one by moving away from coal and driving focus towards new firming and renewable capacity.

Shares of AGL closed 1.88% down at AU$6.77 per share on Wednesday (12 October 2022).

Frontier Energy Limited (ASX:FHE)

Renewable energy company, Frontier is focused on the Bristol Springs Project, situated in the southwest of WA (Western Australia). The Bristol Springs Project intends to be a commercial hydrogen project across the nation. Based on the publicly available data, the company said that it expects the project to be one of the low-cost producers of green hydrogen in Australia.

Almost a week ago (on 6 October 2022), the company announced that it had inked an agreement for collaboration with Waroona Energy Pty Ltd. The agreement focused on the projects of both companies. Waroona Energy is focused on its 241MW solar farm, which is located adjacent to Bristol Springs Project. The construction at the Waroona project is targeted to begin in 2023.

The agreement allows open dialogue between the parties and enables them to undertake discussions with stakeholders about renewable energy in the region. Moreover, the agreement would aim at delivering cost savings for both companies.

Frontier shares ended today’s trading session at AU$0.46 apiece, up 2.22%.

Image source: © Audioundwerbung | Megapixl.com

Hazer Group Limited (ASX:HZR)

Clean technology solutions provider, Hazer is engaged in the commercialisation of HAZER Process. It is a ‘low-emission hydrogen and graphite production process.’ The process allows the conversion of natural gas into high-quality graphite and hydrogen by utilising iron ore as a process catalyst.

The chairman’s letter informed that in FY22, the company was focused on designing and constructing its commercial Demonstration Project. The project is a key step in reflecting the commercial potential of the HAZER Process. Reportedly, in FY22, the company had completed the construction and commissioning activities at the project.

Today, Hazer shares closed at flat AU$0.52 per share.

Pure Hydrogen Corporation Limited (ASX:PH2)

Hydrogen explorer, Pure Hydrogen is focused on offering energy solutions for clean and hydrogen energy. The group is looking forward to producing hydrogen at multiple plants and supply to multiple regions of Australia.

The initial projects are planes near Gladstone and Miles. Under a joint venture with Liberty Hydrogen, the company would develop four hydrogen hubs on East Coast of Australia. The company plans to supply hydrogen fuel to the regional market of Asia Pacific along with the Australian domestic market.

In FY22, the company settled a dispute with the Australian Taxation Office and the Department of Industries. Under the settlement, Pure Hydrogen would receive AU$6.4 million.

During the year, the company signed up JJ waste to progress with the ‘development of a demonstrating model hydrogen-powered garbage truck.’

As of 30 June 2022, the company had a cash balance of AU$9.5 million. It does not include an AU$6.4 million R&D tax incentive payment.

Pure Hydrogen shares closed 2% down at AU$0.24 per share.

Image source: © Audioundwerbung | Megapixl.com

Sparc Technologies Limited (ASX:SPN)

The major area of focus of Sparc Technologies is Graphene. The company holds a majority interest in Sparc Hydrogen, which is focused on photocatalytic green hydrogen technologies.

In the preliminary final report, the company shared that loss from ordinary activities after tax increased by 251% to AU$14,201,976. The loss for the year includes share-based payments to employees and directors (AU$5,632,902). The company did not announce any dividends during the year ending on 30 June 2022.

In FY22, the company build its business in multiple key areas. Sparc got into green hydrogen, photocatalytic water splitting technology via a relationship with the University of Adelaide. In October 2021, Sparc Hydrogen Joint venture was formed, and in February 2022, Fortescue Future Industries joined the joint venture.

The key activities during the year include ongoing research in advancing graphene-based technology for composite, concrete and coating materials. The company established entities in the UK to assist the commercial activities that are related to graphene.

Shares of Sparc closed 1.78% up at AU$0.86 per share.