Hydrogen Co. Demos Clean Boiler Technology in the UK

Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FSE) announced that its subsidiary, Supercritical Solutions Ltd., has completed a green hydrogen demonstrator in Northeast England.

The company said it considered the event a "significant milestone" along Jericho's s path to deliver zero-emission hydrogen into the mix for the clean energy economy and net-zero emissions worldwide.

It's all part of the WhiskHy project, a partnership between Supercritical and Beam Suntory, a global leader in premium spirits, and the Manufacturing Technology Center.

"Innovation is central to delivering the new technologies we need to cut our carbon emissions and reach net zero," UK Minister for Energy Efficiency and Green Finance, Lord Callanan, said while visiting the demonstrator. "Backed by £2.9 million in government funding, this new milestone will forge the way to using hydrogen in whisky production, helping to decarbonize our industrial heartlands."

The analysts see Jericho Energy as well positioned to scale and maintain a Buy rating and CA$0.50 price target.

Supercritical said it anticipates delivering green hydrogen below £1 (the current price of the commodity was US$0.79 per kilogram before 2030), which the company said would open up a transformative era in the energy landscape.

"Innovative projects like WhiskHy are really moving the needle on how we can revive traditional distilling methods in a sustainable and responsible way," said Suntory's environmental and sustainability manager, Alistair Leckenby.

Tech Being Applied to Liquor Stills

Another Jericho subsidiary, Hydrogen Technologies, has developed a Dynamic Combustion Chamber™ boiler that burns 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.

"Beam Suntory hopes to apply direct hydrogen flames to copper stills, respecting traditional distillation techniques while reducing its carbon footprint. The objective is to revolutionize the whisky industry, crafting products of the highest quality with net-zero emissions," the company said in a release.

The Catalyst: 'We're Crafting the Future of Energy'

Along with Supercritical and Beam Suntory, the Manufacturing Technology Centre is also a part of the partnership, which is funded by the Net Zero Innovation Portfolio to combine traditional whiskey production methods with zero-emission technology.

"As we unveil our green hydrogen demonstrator in Teesside, it's not just a showcase of technology, but a testament to our commitment at Supercritical to revolutionize sustainable energy," Supercritical Chief Executive Officer and co-founder Mike Bird noted in a release. "This cutting-edge facility represents our innovative approach to electrolysis, offering a glimpse into a future where green hydrogen is both economically and environmentally viable. We're not just engineering a product; we're crafting the future of energy, proving that sustainability and efficiency can go hand in hand."

Supercritical said its technology "is expected to be pivotal in reducing green hydrogen costs, fast-tracking its accessibility."

Beam Suntory, a major liquor distiller of brands such as Jim Beam bourbon and Maker's Mark whisky, said on its website that it hopes to apply direct hydrogen flames to copper stills, respecting traditional distillation techniques while reducing its carbon footprint.

The objective is to revolutionize the whisky industry, crafting products of the highest quality with net-zero emissions. 

The UK facility with the demonstration boiler will further test Supercritical's electrolyzer technology, Smith said.

The company said it could deliver ready-to-burn green hydrogen at £1/kilogram before 2030, marking a transformative era in the energy landscape.

Analysts: Expect More, Larger Contracts in 2024

The company reported Q3 results in line with expectations. Atritum Research analysts Nicholas Cortellucci and Ben Pirie wrote in a research report that the company's oil and gas joint venture (JV) posted positive EBITDA based on higher commodity prices. 

The company continues to make advancements through its Hydrogen Technologies unit and minority investments. The analysts expect initial commercial orders in 2023 for the company and potentially larger contracts in 2024 as the hydrogen industry develops, the analysts said.

Cortellucci and Pirie wrote that with progress across both the traditional energy and clean hydrogen businesses, the analysts see Jericho Energy as well positioned to scale and maintain a Buy rating and CA$0.50 price target. 

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.

Ownership and Share Structure

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

JEV's market cap is CA$58.31 million, and it trades in a 52-week range of CA$0.44 and CA$0.20. It has 248.14 million shares outstanding, 178.38 million of them floating.

Important Disclosures:

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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