25 Reasons to Invest in HyTerra
1. First ASX mover in the natural hydrogen space which is seeing an enormous amount of interest now
2. Risk reduced by virtue of a possible helium discovery as well as hydrogen
3. Will more than likely have the richest man in Australia in Andrew ‘Twiggy’ Forrest in its corner within weeks
4. This richest man in Australia sees enough potential here to plough $21.9M into the company
5. The additional funds ensures significant additional leasing at Nemeha and an expanded geophysics and expanded drilling campaign
6. With this influx of funds, HYT triples its exploration well count from 2 to a minimum of 6
7. Should the Fortescue buy-in be approved, they will have a member on the board that will obviously have input into the direction the company goes in, no doubt under the guidance of Twiggy
8. HyTerra is exploring in an area in Kansas where historical well occurrences graded up to 92% hydrogen and 3% helium
9. An existing well has already been graded as 3% Helium - the economic threshold for helium-rich fields in the USA is concentrations > 0.3% (we have 10x that)
10. Best place globally to be exploring for hydrogen with the USA incentivising investment
11. The USA IRA Clean Hydrogen Production Tax Credit has created a 10 year incentive for clean hydrogen of up to $3/kilogram
12. If the cost to produce natural hydrogen is app. $1/kilogram, there will be potentially no/exceptionally low cost to the company to produce taking into account the tax credits
13. USA providing funding of $8 billion for regional clean hydrogen hubs
14. Should Fortescue be given the green light at the upcoming EGM, Kansas will potentially be the first of many forays in this space with the Strategic Alliance aiming to target other possibilities globally
15. Private US company Koloma is set to also explore in the Mid West and has seen app. $350M poured into its coffers with Bill Gates, Jeff Bezos, Mitsubishi, United Airlines and Osaka Gas getting on board - some heavy hitters there
16. HyTerra now has accumulated a very significant exploration acreage in Kansas of approximately 52,000 acres
17. HyTerra has been very strategic in acquiring acreage that is geologically contiguous to several historic well occurrences (10+ occurrences in the Nemaha region) and connected via existing transport infrastructure
18. The natural hydrogen will be produced using conventional oil and gas techniques; HyTerra has a board which is a who’s who of major players in developing onshore gas fields across the world (most of these guys are ex-Shell high flyers including Dr Dirk Smit, former Chief Scientist of Shell)
19. Exploration success will see HyTerra target the ‘low hanging fruit’ which will be supplying the potential off takers all around these wells including ammonia producers and petrochemical plants
20. These potential off takers are all connected via EXISTING transport infrastructure
21. Minimal processing ensures that this will be a fast path to commercialisation
22. TAM for global ammonia is currently a massive US$80B looking to grow to US$120B by 2032
23. Koloma and HyTerra are the companies that are the most advanced in the USA as far as exploration for natural hydrogen goes - Koloma is a private company and so that leaves publicly listed HyTerra as the company to invest in as the other biggest player in this space currently
24. Lowest cost producer, in the words of Benjamin Mee, will always win - forget green, blue, grey hydrogen producers, must be WHITE
25. Natural Hydrogen not only has the lowest production costs, it’s very close to zero carbon emissions
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