Clean Tech Co. Sells First Hydrogen Boiler to University

Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FSE) announced that a prominent anonymous university is adopting its zero-emission Dynamic Combustion Chamber™ hydrogen-fueled boiler for its district heating system.

DCC™ steam boilers are made by Jericho subsidiary Hydrogen Technologies. They burn hydrogen and oxygen in a vacuum chamber to create high-temperature water and steam with no greenhouse gases or other pollutants.

The only by-product is water, which is recycled. It's meant to replace existing boilers that burn coal, natural gas, diesel, or fuel oil.

"This represents JEV’s first boiler sale, which we originally anticipated would come later this year and positions JEV as a key industry leader and a first mover in its category," wrote analyst Nicholas Cortellucci in an updated research note on Thursday. Cortellucci has a Buy rating on the stock but increased his target price to CA$0.50 from CA$0.40 per share.

Jericho also noted that more than 1,100 universities and colleges with about 11 million students have signed the "Race to Zero for Universities and Colleges," pledging to reduce emissions by 2030 and reach net zero by 2050 at the latest.

The Catalyst: 'A Significant Milestone' for Company

Getting its foot in the door with the sale will provide "ample opportunities for HT to expand into" the university heating segment, Cortellucci wrote.

Jericho Chief Executive Officer Brian Williamson said the sale "marks a significant milestone for the company."

"This partnership demonstrates the growing demand for innovative solutions in decarbonizing the US$198B (billion) global district heat industry," Williamson said. "By leveraging our zero-emission hydrogen boiler technology, we are proud to contribute to the University's commitment to carbon neutrality and set a precedent for other institutions seeking effective and eco-friendly heating solutions."

Analyst Nicholas Cortellucci has a Buy rating on the stock but increased his target price to CA$0.50 from CA$0.40 per share.

Another recent Jericho and Hydrogen Technologies announcement also bodes well for the company, Cortellucci wrote. The company is collaborating with a "leading global alcoholic beverage company" to study using the boilers at production facilities in four countries.

"Decarbonization remains a pressing issue in the beverage industry and plays into JEV and HT’s value proposition," he wrote. "JEV has 30-plus ongoing studies with potential clients at the moment, many of which are moving towards orders."

There are more than 660 district energy systems operating in the United States, providing heating to an estimated 5.5 billion square feet of floor space for everything from universities to business districts to hospitals and airports, according to a U.S. Energy Information report.

New Plant Scalable, Pre-Assembled

Jericho recently announced it was partnering with two other companies to manufacture, implement, and service a new DCC™ boiler-based hydrogen steam plant called the HSP3000 that will come pre-assembled in container-sized units and eliminate the CO2 equivalent of about 5,000 cars.

Cortellucci wrote on July 13 that he expected that partnership to accelerate Hydrogen Technologies' sales commitments in the second half of the year.

Cortellucci wrote on July 13 that he expected that partnership to accelerate Hydrogen Technologies' sales commitments in the second half of the year.

The HSP3000 hydrogen steam plant will be scalable and modular and will come pre-assembled. It is being produced and assembled using the DCC™ technology by Sofinter Group and offered as an integrated solution by EXOGEN Hydrogen Solutions, Jericho noted.

"The HSP3000 can also eliminate all NOx, CO2, and other GHG emissions from industrial steam and district heating applications, potentially allowing clients to harvest carbon credits," Cortellucci wrote. "We expect the product launch to expedite sales commitments across various industries including, Pulp & Paper, Food & Beverages, Pharmaceuticals, Industrial Chemicals, and O&G (oil and gas)."

The unit requires no smokestack or hazardous emission management systems, Jericho pointed out.

"The only exhaust of the plant installation is clean water, which is ready for circular use with electrolyzer systems, further enhancing its positive environmental impact," the company said in a release.

Market Holds Promise for Growth

Jericho, which started as an oil company, is pivoting toward green energy, using profits from its oil and gas assets to fund investments in zero-emission hydrogen technologies.

While the hydrogen market "is in its infancy," it has the "potential for near-zero greenhouse gas emissions," the U.S. Department of Energy said.

"It holds promise for growth in both the stationary and transportation energy sectors," the agency wrote.

Meeting net-zero emissions scenarios will require more hydrogen technology and projects, the International Energy Agency has written.

"Faster action is required on creating demand for low-emission hydrogen and unlocking investment that can accelerate production scale-up and deployment of infrastructure," the agency wrote.

Almost US$26 billion in United States taxpayer money is being made available for hydrogen projects because of recent acts of Congress, The Guardian said. 

Hydrogen is also a "uniquely versatile energy carrier," according to a report by the Hydrogen Council. "It can be produced using different energy inputs and different production technologies. It can also be converted to different forms and distributed through different routes — from compressed gas hydrogen in pipelines through liquid hydrogen on ships, trains or trucks, to synthesized fuel routes." 

Ownership and Share Structure

Around 35% of Jericho's shares are held by management, insiders, and insider institutional investors, the company said. They include CEO Brian Williamson, who owns 1.25% or about 3.1 million shares; founder Allen William Wilson, who owns 0.79% or about 1.97 million shares; and board member Nicholas Baxter, who owns 0.46%, or about 1.14 million shares, according to Reuters.

Around 10% of shares are held by non-insider institutions, and 65% are in retail, the company said. 

JEV's market cap is CA$75.17 million, and it trades in a 52-week range of CA$0.44 and CA$0.22. It has 248.14 million shares outstanding, 178.38 million of them floating.

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1. Jericho Energy Ventures Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Jericho Energy Ventures Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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