it's not really 'nah we aren't going to'. I believe what they are planning is actually a greater value added than just piping the gas. They will use the gas from Borba to produce Hydrogen that is low capex using 'plug and play' tech and equipment.
The benefit of this is that Hydrogen is the new 'green' energy. California being a strong state supporter of the Democrats is a strong greenies/ lefties state. The state government has an established history of supporting the adoption of green energy. It is also also mentioned in the announcement that they are lobbying for a US$300M Hydrogen subsidy for Hydrogen businesses. This means SGC and XST will get subsidies for their low capex operation coupled with an already established and growing Hydrogen infrastructure in California.
USA also just committed to Cop26 to cut their emissions. I believe the US will follow through as year by year they are reducing their emission. The same can't be said to China (they are building new coal power stations as we speak) who also committed to Cop26. As I mentioned before, developing countries will keep pushing the demand and price up for oil, gas and coals.
Either way, XST is in a good place to be as they are covering both conventional and green energies.
XST Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
