- APA Group’s (ASX:APA) share price skyrocketed on Monday, reaching a new 52-week high of AU$10.62 at the day's peak.
- The strong performance of the S&P/ASX 200 Utilities Index on Monday may have contributed to the rise in the APA share price.
- Pilot Energy Limited has declared the completion of hydrogen technology and renewable energy feasibility studies.
The share price of APA Group (ASX:APA) skyrocketed on Monday, reaching a new 52-week high of AU$10.62 at the day's peak.
The rise coincides with a ‘good news’ about a hydrogen feasibility study financed by a consortium comprising utility firm APA Group and 2 ASX-listed energy manufacturers, Pilot Energy Limited (ASX:PGY) and Warrego Energy Limited (ASX:WGO). Pilot Energy has declared today that the feasibility studies have been completed in the mid-West region.
Meanwhile, riding high on the announcement, the company's stock, APA, closed today's session at AU$10.470 per share, stronger by 1.061%.
On the other hand, despite a positive update, the stock prices of PGY and WGO, two energy firms, slumped by 18% and 3%, respectively.
In addition, while APA has had a decent growth of 4% in one year, the other two energy firms, PGY and WGO, have had a bearish year, with the share prices declining by 35% and 34%, respectively.
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It is worth mentioning that today the utility sector has beaten the overall market. The S&P/ASX 200 Utilities Index (ASX:XUA) ended 0.42% higher at 7,524.30 points. The strong performance of the S&P/ASX 200 Utilities Index on Monday may have contributed to the rise in the APA share price. On the other hand, S&P/ASX 200 Energy (AXEJ) ended 0.07% lower at 10,123.30 points.
About the companies
APA Group operates and owns electricity assets and natural gas, making it Australia's biggest natural gas infrastructure firm.
Pilot Energy is a firm that focuses on gas and oil production and exploration. Pilot owns a 50% stake in the Cliff Head Oil field Operator and 100% stakes in EP416/480 and WA-481-P exploration licences.
Warrego Energy Limited is a petroleum production, development, and exploration business with holdings in Uruguay, Spain and Australia.
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Completion of hydrogen feasibility studies
Pilot Energy Limited has declared the completion of hydrogen technology and renewable energy feasibility studies. The firm validates the Mid-Western area's feasibility in producing internationally competitive clean hydrogen, as well as a multi-staged development plan.
According to a press release published by the ASX on 12 August 2021, Pilot Energy has begun critical studies to evaluate the feasibility and economics of a large-scale clean hydrogen production project using its existing gas and oil operations.
The mid-West integrated renewable energy project's feasibility studies are listed below -
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Feasibility studies result
These feasibility studies have demonstrated the great potential to create a largescale clean hydrogen production project that integrates renewable energy generation and CCS to generate power and hydrogen for both export and domestic markets.
Brad Lingo, Chairman, Pilot Energy, stated:
Following the execution of the WA-31L CCS feasibility study, the firm anticipates that the WA-31L Joint Venture will seek the regulatory clearance from the NOPTA (National Offshore Petroleum Titles Administrator) to declare the Cliff Head Oil Field reservoir a greenhouse gas storage formation.