Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC PINK: JLM:FRA) made an announcement regarding its portfolio company, H2U. The company proudly revealed the successful demonstration of its first proton exchange membrane (PEM) electrolyzer for commercial hydrogen production, notable for its lack of iridium usage, reported Nicholas Cortellucci in an Atrium Research note.
Cortellucci commented that this achievement represents a major breakthrough for H2U, bringing them closer to resolving one of the most pressing challenges in the green hydrogen sector today.
Using its own 200kW containerized electrolyzer system, H2U successfully completed an in-house demonstration of its iridium-free electrolyzer. This milestone allowed them to gather additional data points, further reinforcing the durability and performance of their novel non-iridium catalysts on a commercial scale.
Building on this achievement, Cortellucci noted that H2U has plans to develop and construct its first external proof-of-concept units, which are scheduled for shipment by the end of 2023.
"Currently, all commercially available PEM electrolyzers rely on iridium catalysts, which poses scarcity and supply-chain threats to the growing electrolyzer industry," Cortellucci said.
Cortellucci highlighted a finding from The International Energy Agency's Global Hydrogen Review. According to the report, in a net zero emissions scenario where proton exchange membranes (PEMs) supply all electrolyzer production in 2030, the demand for iridium would experience a staggering 9-fold increase, reaching 63 Kt. In light of this projection, H2U has embarked on a mission to address the pressing issues of production costs and supply chain limitations, ultimately paving the way for greater accessibility and cost-effectiveness of green hydrogen.
"We remind readers that JEV has invested a total of US$1.5M into H2U preferred shares, equating to 6.5% pro-forma ownership, and holds a board seat. H2U’s technology is based on ten years of research and development and US$122M in funding from the U.S.," Cortellucci said.
Structure and Predictions
In his research, Cortellucci said, "We continue to value JEV’s minority investments at cost due to their low visibility; however, given today’s release and the plan to ship proof-of-concept units by yearend, we foresee an opportunity to increase our valuation of H2U." He also shared current rating and target price information as well as current market data on the company.
Rating: Buy
Price: CA$0.26
Target Price: CA$0.40
Return to Target: 54%
The company carries an enterprise value of US$50 million and a debt of US$3.3 million.
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- Jericho Energy Ventures Inc. is a billboard sponsor of Streetwise Reports and pays a monthly SWR sponsorship fee between US$3,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Jericho Energy Ventures Inc.
- Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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Disclosures for Atrium Research Corp., Jericho Energy Ventures Inc., June 27, 2023
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