Bullish Sign? - Bounced off 200 EMA, page-3860

Sabine

My post 53728343 on ammonia suited the WES subforum, but my mind was actually on NWH's METS segment, because that is where I have a financial interest.

If Twiggy Forrest decides to look into green hydrogen, or more specific to that post, green ammonia, other parties are going to have similar thoughts. At worst there will be feasibility studies, and NWH, via its expanded METS business, can do that, albeit for a relatively small fee. However, these things can grow into a second step involving a pilot plant, which can run into fairly significant expenditure. Some of these projects lead into large projects. Getting into that type of business is why I liked the NWH's acquisitions of RCRMT, DIAB and Primero, whereas I am normally wary of growth by acquisition.

I genuinely think that in respect to iron ore, Twiggy Forrest and/or the likes of RIO and BHP are going to do something serious with WA's abundant natural gas, and its infrastructure. Amongst other things, it will involve producing hydrogen, and using ammonia as a hydrogen carrier. It's bit like selling packaged fish, hydrogen as a fuel for things now using diesel requires to be packaged as a hydrogen-nitrogen compound, and that is ammonia. Using hydrogen as an iron-ore reductant does not need to be thus packaged, but that is another topic.

The steel industry can go “green” in steps, and as far as hydrogen-ammonia is concerned, the steps in WA can be grey hydrogen, blue hydrogen and then green hydrogen when it becomes commercially viable. NWH should aim to pick up METS-style contracts on that pathway, plus any traditional business in which NWH has a longer history.