Co. Sells First DCC Hydrogen-Fueled Boiler
Research Report

Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FSE) had its target price increased by Atrium Research after two recent developments, reported analyst Nicholas Cortellucci in an Aug. 3 research note.

"We are increasing our target price based on strong execution on the Hydrogen Technologies side as well as increasing oil prices," Cortellucci explained. Hydrogen Technologies is Jericho's  subsidiary that developed the patented DCC hydrogen-fueled boiler.

61% return projected

Atrium's new target price on Jericho is CA$0.50 per share, up from CA$0.40. The cleantech firm's current share price is about CA$0.31 per share. The gap between this current and target prices implies a compelling return for investors, of 61%.

Jericho remains a Buy.

First order received

Cortellucci discussed Jericho's latest achievements. Sooner than Atrium expected it would, the Canadian energy company sold its first zero-emission, DCC steam boiler, to an unnamed university in the West.

This sets a precedent for other higher education facilities, especially since 1,173 of them worldwide intend to reduce emissions by 2030, according to Jericho's management. This market represents a significant opportunity for the Canadian company.

Also, this initial sale "positions Jericho as a key industry leader and first mover in its category," added Cortellucci. "We expect [the company] to build on this momentum and continue to sign boiler contracts over the coming quarters."

Additional sales will likely come from the 30-plus studies involving the DCC steam boiler that are in progress, noted the analyst. Further contracts could move up Jericho's share price.

Multinational exposure

Jericho's second recent development is a new collaboration with a leading global alcoholic beverage company. The two parties agreed to conduct a study on the use of DCC hydrogen boilers to decarbonize production facilities. For the analysis, Jericho's boilers will be installed in the partner's production facilities in four countries.

"Decarbonization remains a pressing issue in the beverage industry and plays into Jericho and Hydrogen Technologies' value proposition," wrote Cortellucci.