Key Milestone Reached in BPH Energy’s Hydrogen Sector Plans
BPH Energy (ASX: BPH) has achieved a significant milestone in its strategic efforts to participate in the thriving hydrogen sector. The company’s investee companies, Clean Hydrogen Technologies and Onshore Energy, have signed a hydrocarbon process agreement. This agreement not only propels BPH Energy’s involvement in the multi-billion dollar hydrogen industry but also presents opportunities for the development of a substantial “stranded” gas field in northern Australia.
Investee Companies and Natural Gas Assets
BPH Energy holds an 8% direct interest in Clean Hydrogen Technologies and a 36.1% direct interest in Onshore Energy. Onshore Energy, in turn, is a wholly-owned subsidiary of Advent Energy, which possesses the rights to natural gas assets at the Weaber field located in onshore Retention Lease RL1 in the Northern Territory’s Bonaparte Basin. An independent audit conducted by RISC has confirmed the 2C contingent resources for Weaber at 11.5 billion cubic feet (Bcf) of natural gas, with additional upside 3C contingent resources assessed at 45.8 Bcf.
Development Strategy for Hydrocarbon Processing
Under the newly signed agreement, Onshore Energy and Clean Hydrogen will collaborate on a development strategy. Clean Hydrogen will leverage its capabilities to process hydrocarbons extracted from Advent’s gas opportunities, producing high-value hydrogen and carbon black products. The hydrogen, often referred to as turquoise hydrogen, holds substantial market potential. The global clean hydrogen market was valued at approximately $5.6 billion in 2022 and is projected to reach $27.1 billion by 2032, growing at a compound annual growth rate (CAGR) of 14.8% from 2023 to 2032. Carbon black, another valuable product, finds extensive use in various applications such as tires, newspaper inks, paints, toners, and high-technology materials. The global carbon black market size was estimated at around $35.6 billion in 2022 and is expected to grow at a CAGR of 6% to reach approximately $71.2 billion by 2033.
Advancements by Clean Hydrogen Technologies
Clean Hydrogen Technologies is actively developing a commercial system aimed at achieving scale and commercial objectives for its specialized hydrogen and carbon black products. The company’s end-to-end system utilizes a unique thermocatalytic reactor process and catalysts to consume and process hydrocarbons, resulting in the production of hydrogen at a commercial scale. As part of the hydrocarbon process agreement, the involved parties will collaborate on developing a comprehensive plan, including timelines, for the production of clean hydrogen products using Advent’s hydrocarbons.
BPH Energy’s Investment in Clean Hydrogen Technologies
BPH Energy unveiled its plans for the hydrogen market in mid-April, confirming its intention to make a significant investment in Clean Hydrogen Technologies. A binding term sheet was executed between BPH Energy, Advent Energy, and Clean Hydrogen, outlining their agreement to subscribe for fully paid shares in the technology specialist company. The investment represented a total of 10% of Clean Hydrogen’s issued share capital, with BPH contributing approximately $1.1 million and Advent providing $297,000. Following the transaction, BPH Energy will hold a 16% interest in Clean Hydrogen, while Advent will possess a 4% interest.
In summary, BPH Energy has achieved a major milestone by securing a hydrocarbon process agreement through its investee companies, Clean Hydrogen Technologies and Onshore Energy. This agreement not only paves the way for BPH’s involvement in the lucrative hydrogen sector but also holds potential for the development of a significant gas field in northern Australia. As Clean Hydrogen progresses with its hydrocarbon processing capabilities, BPH Energy remains committed to expanding its presence in the hydrogen market and driving innovation in the energy sector.
