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Share Watch – 25 April 2021

The cohort of ASX stocks in hydrogen has exploded in recent months and in the past few months several more companies have entered the field and the mere announcing of intent to pursue hydrogen is enough to send share prices surging.

But where are all these companies at right now and could the cohort expand in the months ahead? Everlution Share Watch has been keeping a close eye on Infinite Blue Energy (IBE) who are slowly moving towards an IPO. The original IPO was set for February this year, but delays have kept rolling out. Now we are hearing July/August of this year.

A handful of companies are eyeing a listing – one being Verdant Technologies which is attempting to become the largest hydrogen producer on Australia’s East Coast. In February it raised $2 million in pre-IPO funding and by next year is hoping to produce 6.5 tonnes of compressed hydrogen per day.

Another is Sweetman Renewables which recently launched a $2.5 million pre-IPO round. It will convert waste biomass into green hydrogen for domestic use including for Verdant.

Peak Asset Management is aiming to take Countrywide Renewable Energy – a private hydrogen company public in 2021. It has several partnerships including with energy giant Woodside Energy (ASX:WPL).

However the stocks already on the bourse have big ambitions too and investors are evidently confident. The average performance in the past 12 months is a gain of 595 per cent and even in the last week a solid 34 per cent.

The ASX hydrogen stock that is up the most is Province Resources (ASX:PRL) which is up nearly 2900 per cent. After a tough stint as a vanadium explorer it bought a couple of projects in WA’s north west. The most recent news out of this company was a non-binding MoU with French renewables company Total Eren to perform a feasibility study to see if a green hydrogen project of up to 8GW (and equally owned by Total Eren and Province) could be developed.

Another pivoter is Hexagon Energy Materials (ASX: HXG) which snapped up a project in the Northern Territory earlier this year. It has just formally closed the deal and is eyeing to complete a Pre-Feasibility Study on the project this calendar year.

Then there is Global Energy Ventures (ASX:GEV) is a unique player having designed a ship that could carry compressed hydrogen exports. The company’s last update came in mid-March when it got Approval in Principle (AIP) from the American Bureau of Shipping (ABS). It says it can now progress to the final detailed engineering design and testing to obtain Full Class approval.

Next there is Hazer (ASX:HZR) which was for some time the only pure play hydrogen stock on the ASX. It is planning to commission a project in WAS that will provide 100 tonnes of hydrogen. Shares have retreated from its all-time highs in February but it has continued to make progress, most particularly getting the Foreign Investment Review Board’s blessing for AP Venture Fund to chip into the company.

QEM (ASX:QEM) is another which last month announced plans to study “green hydrogen opportunities”. Since finishing March as one of the ASX’s greatest winners that month, it’s engaged DNV Australia to undertake a pre-feasibility study into power generation from hydrogen as well as from wind and solar at the site. QEM promises this will be finalised at the end of this quarter and after that more definitive studies will be undertaken.

Financial indicators

The VIX fear gauge up since 18 April by 1.08 points to 17.33.

The Dow Jones Industrial Average down 164.34 points or 0.58% since 18 April to 34,043.49, the STOXX 600 down 3.25 points or 0.76% to 439.04 and the Shanghai Composite index up 25.62 points or 5.67% to 3,474.17.

Gold steady on 1,776.80. US 10-year Treasury Bonds on 1.564 and oil down to 62.04. Cryptos Bitcoin down by 2,682 points or 5.17% to 49,225.

ASX 200 down 2.80points or 0.01% since 18 April to 7,060.70 today. The Aussie dollar up to 77.47US cents.

Eco Market Spot Prices

LGC $33.75

STC $38.70

ESC $30.40

VEEC $58.00

ACCU $18.50

Sources: RenewEconomy, demandmanager,  Reuters, SMH, Market Watch, Stockhead

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