Let's be clear, Hovárth are management consultants, not engineers or research scientists. H2 storage is currently a research project (https://www.underground-sun-storage.at/en/partners/consortium-partners/mul.html). It is not just a matter of pumping hydrogen into a formation - Hydrogen may cause equipment problems (much smaller molecules), it does react and will react with CO2 underground to produce methane ... so far testing has only gone to 10% of hydrogen content of injected volumes. Once technical issues out of the way, there is the regulatory and legal ... anyone remember the Hindenburg?
Hovárth will put together a credible business plan with some good expert input - call it a roadmap with a business plan ... they are not there to solve ANY of the fundamental technical and regulatory challenges of H2 storage, in general or specific to ADX assets ... which make this very long term project.
H2 storage and CCS are good ideas, they will in all likelihood happen, and be a source of profit. Hydrogen is already being mixred into methane pipelines in Europe (Italy and others) up to 10% by volume.
I just do not see it happening on ADX's current Austrian assets in the next 7 years. The government will help out the big players - RAG has a huge gas storage business, and OMV is the big player in Austria ... much bigger than ADX and obviously better connected politically.
Somehow seems like a press release to juice the stock price ahead of the issue ...
ADX Price at posting:
0.8¢ Sentiment: None Disclosure: Not Held
