Ann: MOU with Total Eren to Develop Green Hydrogen Project, page-142

PRL’s Binding MoU with Total Eren may actually be WAY BETTER than we first thought...

PRL’s announcement wording was pretty vague and we shared our initial interpretation with you yesterday.

After a few readers responded with a different interpretation of the announcement wording, we emailed PRL CEO David Francis and asked if he was able to comment on speculation on the deal, here is what he said:

“The intention is for Total Eren to fund, own and operate the upstream renewable power facility and the partners (Total Eren & PRL) to own all of the downstream assets (hydrogen production and distribution) 50:50.”

So Total Eren could be funding the ENTIRE cost to develop a potential 8GW wind and solar plant.

This is WAY BETTER for our new 2021 Small Cap Pick of The Year PRL than what we first thought and shared with you yesterday.

Based on other green energy projects around the world we VERY ROUGHLY calculated that a cost of an 8GW renewable electricity project to be $12 Billion - assuming ~$1.5 Billion per GW we noticed on other projects.

PRL and Total Eren would be 50:50 owners of the Hydrogen production and distribution - a much lower CAPEX (we expect in the $ hundreds of millions) than the renewable energy side - all will be revealed in the scoping study soon.

This would be a pretty epic deal for PRL, significantly better than what we first thought yesterday, as the cost to develop the renewable plant was the largest question mark we still had over the project.