Old Technology - SMRThe incumbent technology to convert fossil...

Old Technology - SMR
The incumbent technology to convert fossil fuels to Hydrogen is Steam Methane Reforming. However for every tonne of Hydrogen that is created from coal through SMR, 20 tonnes of CO2 are the by product. For every tonne of Hydrogen from gas, 9-10 tonnes of co2 are the by product. They claim that Carbonm Capture and Storage are the solution, pumping CO2 into geological formations underground. Gorgon has Australia's largest CCUS and is an absolute failure, storing 1/4 of what it was supposed to. Airproducts have a large CCUS facility in Texas, and an independent report showed that it costs $76 usd per tonne of co2 to store. This is 3.5 times the cost of buying a carbon credit.

A company making Hydrogen from coal using SMR and CCUS has a $2000aud disadvantage per tonne of hydrogen just for the co2 storage.

Hydrogen bandwagon
Hydrogen is the thematic of the month. Many ASX companies have become Hydrogen plays overnight, but very few will survive. One such company is building a process plant currently. They will produce 1 tonne graphite a day and 300kg of H from their CDP. Investing $22m to get revenues of $1m annually isn't commercial, adding scale is unlikely to change the equation greatly.

Methane Plasma Pyrolysis
Methane Plasma Pyrolysis, is a different beast. It produces the Hydrogen, but without the nasty CO2 by product. The carbon doesn't bond with oxygen to form CO2, instead it is dropped out as carbon. This can be a highly valuable product.

Having no co2 byproduct is a massive advantage. According to Syngen, a container size plant will produce 1400kg of Hydrogen and 4000kg of high value carbon products a day. If we assume a long term Hydrogen price of $5kg and $1000/t for the carbon (a graphite price was used, but if they produce the allotype of graphene then it would be > $60,000 a tonne), they should generate about $3.5m per container. If they can produce pure graphene, as aoposed to graphite, then it's off to the races. No idea of the Capex, but as it is a containerised solution, Capex should be reasonable.

I've recently taken a position here and will keenly watch developments.

GLTAH