Believing in Green Hydrogen is like believing in harnessing Perpetual Motion. It’s a total fantasy of Scarlett Johansson and Reese Witherspoon in a three-way proportions to imagine you can put less energy in via electrolysis than the energy you ultimately get out. As Dr Saul Griffith (Ozzie/Yankee renewable energy expert/inventor) says in the dumbed down AFR article:
“To get $2-a-kilogram hydrogen – which is our stretch target – you have to start with 2¢ per kilowatt-hour electricity. If you have 2¢ a kilowatt-hour electricity, why would you waste a quarter of it in the electrolysis, waste another 15 per cent in the compression, another 50 per cent in the fuel cell or the combustion engine coming out?” Griffith asks.
“Making it four times at least, probably five or six if you include capex, more expensive than just doing the whole thing you were going to do with hydrogen electrically anyway.”
= total joke. But don’t let that stop Twiggy. And don’t let that stop dimwits Chalmers and Albo handing billionaires like Twiggy $2b in government grants that they’ve robbed from workers who voted for them either so long as they fritter it away on pie-in-the-sky “Green” Hydrogen projects rather than “Blue”.
Then there’s BRU’s plan to find, then extract “White” Hydrogen out of the ground. Sure, finding it is one thing, but of course, somebody needs to figure out how to do the extraction before it comes to Daddy of it’s own free will. That’s why it’s a cutting edge, pioneering venture… the point is, if it can be achieved, you have cheap, zero-carbon Hydrogen that can power a nation. It’s a dream, but unlike any other colour Hydrogen, not a pipe-dream.
For BRU investors, the immediate question is can we benefit when 2H is floated in early 2024, after our brave SA TO friends sign off at the end of this year? Sounds to me like that’s the plan. I will be taking the money and running, to be perfectly honest, as soon as any free shares or options or whatever are in my hands, simply because it is going to take the best part of another decade to get close to commercial reality and there will be mucho dilution along the way (GHY already trading down in the 30cs having hit 60cs) but would certainly keep an eye on it to reinvest some of that free cash handout at a certain point because I see White Hydrogen you just find and exploit as the only possible way to go if Hydrogen can become a viable energy source and I think it will be. Right now though, it’s just one more good reason to accumulate BRU.
Expand
