Agree Whatsa, hard to put a date on revenue, but probably min 2 years for concept, design, build. Well ahead of most green projects based around wind/solar and electrolysers most of which are probably around 2030. But margins will be significant, as costs with graphite credits as low as $300/tonne are thought to be comparable with SMR so under $2/kg. With bio-methane throw in carbon credits and even better. And in the zero carbon hydrogen market, we will be competing primarily against green hydrogen with curent costs of $5 -$6/kg, although dropping rapidly. On that basis, it's reasonable to assume that HZR plants would be able to pick up margins conservatively of at least $1/kg, so for the 2,500 tonne per annum plants, that's at least $2.5m per plant. Or over $10m/annum for 10,000 tonne plants. The potential number of plants based on bio methane is very large, and great to see Primero mention 35 projects under review. And I'm guessing that's in addition to Chiyoda's efforts in Japan.
Of course, they're likely to get more than $300 / tonne for the graphite and the co-produced graphite will come with superior environmental credientials to any mined graphite. Should be a big winner on that side also.
Then throw in the growing interest in even larger scale Hazer projects built around natural gas that can produce near zero emission hydrogen based on renewable power and there's no limit. And it looks like Santos is likely to be successful in gaining Australian Carbon Credit Units (ACCUs) for its CCS project, so on that basis we would also presumably qualify on these projects adding signifcant cream.
HZR Price at posting:
$1.53 Sentiment: Hold Disclosure: Held
(20min delay)