Nh3 Clean Energy Limited · ASX:NH3
Nh3 Clean Energy — Investor Presentation (March 2021)
51 slides from Nh3 Clean Energy's investor presentation, Mar 16, 2021
Slide 1: Pedirka Blue Hydrogen Project
Hexagon Energy Materials Ltd Pedirka Blue Hydrogen Project ASX: HXG, March 2021
Slide 2: Important Notices
Important Notices DISCLAIMER The purpose of this presentation is to provide background information to assist in obtaining a general understanding of the Company’s proposals and objectives. This presentation may contain some references to forecasts, estimates, assumptions and other forward-looking st
Slide 3: Contents
Contents 1 Hexagon Energy Materials 2 Pedirka Blue Hydrogen Project 3 The case for Blue Hydrogen 4Technical Focus 5 Development Path A1 The Hydrogen Market A2 Other Projects
Slide 4: Hexagon Energy Materials
Pedirka Blue Hydrogen Project Hexagon Energy Materials 4
Slide 5: Corporate Overview
Corporate Overview HEXAGON ENERGY MATERIALS LTD HXG SHARE PRICE 3 Mar 2020–2 Mar 21 3 Mar 2020–2 Mar 21 ASX Code Share Price (02/03/21) Market Capitalisation Shares on Issue HXG A$0.095 A$28.6M 301.2M Options 52 week high 52 week low Average daily volume 4M A$0.14 A$0.031 562,791 TOP FIVE SHAREHOLDE
Slide 6: Corporate Leadership Team
Corporate Leadership Team Charles Whitfield Adam Bacon Garry Plowright Lianne Grove Chairman Ebony Energy - Managing Director Non-Executive Director Commercial / BD Extensive global expertise Extensive experience in the Extensive global expertise Undertook in the energy, resources resource sector, a
Slide 7: Corporate Strategy
Corporate Strategy Hexagon’s strategy is Ownership Ownership Ownership Ownership focused on exploration 100% 100% 80% 100% and development of (subject to compulsory acquisition) clean-energy, and energy materials projects Project Project Project Project Pedirka McIntosh Alabama Halls Project Project
Slide 8: Pedirka Blue Hydrogen Project
Pedirka Blue Hydrogen Project Pedirka Blue Hydrogen Project 8
Slide 9: The Pedirka Project
The Pedirka Project • HYDROGEN PRODUCTION, STORAGE Regionally important Only hydrocarbon-based & INFRASTRUCTURE DEVELOPMENT Blue Hydrogen production can currently provide the volumes and cost base for viable hydrogen supply. • The development basis of the Pedirka Project in the Northern • “Grey” or
Slide 10: Ebony Energy's Pedirka Project
Ebony Energy’s Pedirka Project Ideally located near existing infrastructure to Blue hydrogen from above transport product and undertake CCUS of CO2 ground coal gasification Permits covering ~800sqkm held to explore the Pedirka Basin for coal, located 217km South East of Alice Springs, 1473km South o
Slide 11: A world class Blue Hydrogen project
A world class Blue Hydrogen project Major contributor to the Northern Territory’s hydrogen strategy • JORC compliant Exploration • The Company has developed Target identified by Central plans to produce blue Petroleum (CTP) with potential hydrogen or ammonia for for > 300 billion tonnes of coal expo
Slide 12: The case for Blue Hydrogen
Pedirka Blue Hydrogen Project The case for Blue Hydrogen 12
Slide 13: The role of blue hydrogen
The role of blue hydrogen THE DIFFERENT COLOURS OF HYDROGEN Hydrogen Hydrogen Hydrogen Brown / Grey Blue Green • Most hydrogen produced is derived from fossil fuels • Blue hydrogen uses traditional production method • Green hydrogen produced from electrolysis of water with CCUS (carbon capture, util
Slide 14: The role of Blue Hydrogen
The role of Blue Hydrogen Key end markets such as Japan and the Drivers are cost competitiveness EU highlight the need for blue hydrogen and ability to achieve scale To develop supply in the near-term • This is critical for developing supply chain infrastructure chain infrastructure • As above, Japa
Slide 15: Australian developments
Australian developments Australian government is technology neutral between blue and green hydrogen production COAG ASSESSMENT OF BREAKEVEN COST OF HYDROGEN VS ALTERNATIVE TECHNOLOGY 4.0 Cost-Competitive National Hydrogen Strategy 3.5 and Low Emissions 3.0 Technology Statement are • 2.5 CLEAN HYDROG
Slide 16: The role of Blue Hydrogen
The role of Blue Hydrogen AMMONIA USD CASH COST PER TON FOR CF INDUSTRIES Policy framework evolving to make Blue Hydrogen cost Market value of hydrogen in low- competitive Conventional Blue Green carbon ammonia US$2,000 2,000 CF Industries and Yara, the top two global producers of ammonia, have both
Slide 17: The case for Blue Hydrogen
The case for Blue Hydrogen The blue hydrogen Production Cost Scale Constant Supply is central to the transition to EU Hydrogen Strategy used IEA Currently only Blue hydrogen For users to adopt hydrogen they projects can provide the volumes require a constant supply decarbonisation data to estimate c
Slide 18: Technical Focus
Pedirka Blue Hydrogen Project Technical Focus 18
Slide 19: The Pedirka Blue Hydrogen Project: Four Pillars
The Pedirka Blue Hydrogen Project The Four Pillars for an Economic Access to Market CO2 Solution Resource Social License Blue Hydrogen Australia is ideally placed While many projects are Although the planned Hexagon is focussed on Project to be a major supplier to claiming to be “Blue” by plant will
Slide 20: Managing Green House Gases
Managing Green House Gases Hexagon aims to produce the cleanest Blue Hydrogen Hydrogen produced via fossil fuels with a carbon capture solution are termed “blue” hydrogen. The only existing commercially viable means of producing hydrogen at scale has CO2 as a by- product. The proposed Pedirka gasifi
Slide 21: Australian developments
Australian developments Australia’s most prospective CCUS locations, Explicit support for CCUS considering infrastructure availability Low Emissions Technology Statement set two related Pedirka appears targets relevant to the Pedirka blue hydrogen project well located • Reducing hydrogen production
Slide 22: Social License
Social License Involving Key institutions The project team has Engagement with key Advancement of partnerships A clean Blue Hydrogen solution is been developing the government and public with key groups including, Pedirka Blue Hydrogen sector offices at Territory and technology, CO2 solution, suppor
Slide 23: Established Technology
Established Technology NUMBER OF GASIFICATION 240 PLANTS 8 4 WORLDWIDE 8 300 9 90 Gasification is widely used on a global scale Coal gasification combines Coal gasification is a proven Gasification process via Steam reformation process high pressure and high heat technology, currently in use in stea
Slide 24: Focused Operational Approach
Focused Operational Approach DIRECTIONAL DRILLING COAL TO GAS Ebony Energy’s low-cost FOR COAL SURFACE PLANT production approach has The size and structure of the Pedirka The surface gasification plant is a driven the focus in Project has the potential to utilise low-cost conventional technology tha
Slide 25: Project Location
Project Location Darwin Industrial Area Ideally geographically located Workforce availability due to the proximity to Alice Springs, with processing plant to be located on the outskirts of the town Strong indications of support from both Federal and Territory Governments Potential for Territory, Fed
Slide 26: Pipeline Infrastructure
Pipeline Infrastructure Existing Pipeline Network Alice Springs The Company has Easy access to numerous undertaken studies and CCUS storage facilities received quotations for Pedirka connections from the Basin Blue Moomba Hub project to numerous Hydrogen Brisbane Project pipelines Sydney Pedirka’s c
Slide 27: Transportation
Transportation Well advanced pricing and negotiations for the optional pipeline and transportation usage and extensions MAP – PIPELINE INFRASTRUCTURE MoU with OSD Pipelines Alternative pipeline route Pipelines would transport Moomba Pipeline could Discussions also to build, own and is 280km to Centr
Slide 28: Resource Details
Resource Details 2016 Coal Exploration Report – Ebony Energy – EL29237 and EL29239 Figure 6 Generalized East West Section Ownership 100% Central Petroleum drilling (subject to completion of Ebony Energy takeover) incorporates Pedirka EL29239 Tenements • Pedirka DH1R Project • (Granted) EL29237/EL292
Slide 29: Project Resource
Project Resource DRILL CORE FROM EBONY’S Pedirka Basin tenements DRILLING AT PEDIRKA cover an area of just under 800sqkm. There is significant raw material for long term production and expansion Drilling program aimed to Permits held to explore the Laboratory test-work on establish JORC Compliant Ba
Slide 30: Development Path
Pedirka Blue Hydrogen Project Development Path 30
Slide 31: Next Steps
Next Steps Hexagon Fund Raising Advance Pedirka Project including Capital Raise, funding for project Drilling of coal deposits aimed at advancement defining a JORC compliant resource Complete a Pre-Feasibility Study Undertake Other funding opportunities Advance partnership discussions: exploration •
Slide 32: Critical Success Factors
Critical Success Factors 01 02 03 Development is Further engagement with Confirm technology Determine coal reserves Australian and NT partner for gasification and hydrogen production ongoing, progress governments to ensure project process potential to be reported continues to be consistent with hydr
Slide 33: Capital Raise A$8.5m
Capital Raise $8.5m USE OF FUNDS 000’s capital raise via share McIntosh/Graphite Projects 550 placement (March/April) Halls Creek Project 850 Key projects advancement Pedirka Project 1,500 PFS ~ Pedirka Blue Hydrogen Project Total Exploration Activities 2,900 2,900 Pre-Feasibility Study 3,750 Value
Slide 34: Summary Key Points
Summary Key Points Hexagon Clear pathway to Strong growth A blue hydrogen project focused on clean carbon neutrality forecast for economically viable in the energy and for Australia’s hydrogen in both current market, enabling energy materials first Blue domestic and the pathway to future green with
Slide 35: Adam Bacon, Lianne Grove
ADAM BACON LIANNE GROVE Ebony Energy - Managing Director Chief Commercial Officer adam.bacon@ebonyenergy.net info@hxgenergymaterials.com.au +61 412 087 347 +61 (08) 6244 0349 hxgenergymaterials.com.au
Slide 36: Appendix - The Hydrogen Market
Pedirka Blue Hydrogen Project Appendix 1 - The Hydrogen Market 36
Slide 37: Hydrogen is gaining momentum
Hydrogen is gaining momentum Versatility a key positive in Key global Action to reduce GHG emissions, carbon pricing increasing global decarbonisation efforts drivers include Increasing recognition around the limitations of electrification, particularly for industrial sectors The use of Hydrogen is
Slide 38: Hydrogen is gaining momentum
Hydrogen is gaining momentum 228 HYDROGEN PROJECTS GLOBALLY ACROSS THE VALUE CHAIN Hydrogen Council highlighted 228 active projects currently Largest projects in Europe, Australia, Middle East and Chile Asia and Oceania are 2nd and 3rd in number of projects after Europe Most of the Asian projects ar
Slide 39: Hydrogen is gaining momentum
Hydrogen is gaining momentum Australian governments States/territories with LARGE SCALE MARKET have lofty ambitions consistent policies ACTIVATION FROM 2025 SA, QLD, WA Australia launched its National TAS, NT, ACT Hydrogen Strategy in Nov-19, with 2030 goals including Intersection with post Covid-19
Slide 40: Demand forecast to be strong
Demand forecast to be strong COMPARING 2030 GLOBAL HYDROGEN DEMAND ESTIMATES Electric breakthrough From a current market of ~70mtpa, Business as usual Shell incremental demand expected to be Targeted deployment meaningful ACIL Allen (Medium) Energy of the Future IRENA Australia’s National Hydrogen S
Slide 41: Demand forecast to be strong
Demand forecast to be strong Australian demand will South Korea particularly Asia fast Gas blending develop in hubs, but regional focused on transport sector developing is a large applications demand for potential use- demand will be larger hydrogen, not case (see over) • Expects imports of >5mtpa T
Slide 42: Demand forecast to be strong
Demand forecast to be strong Korean domestic demand for gas Research firm1 stands at 5.4bcf/day; at 10% replacement with hydrogen, this estimates hydrogen equates to 1,363,000 tonnes per year. market will grow from China’s demand for natural gas is expected to grow by over 80% by 2030 and remain as
Slide 43: Storage and transport
Storage and transport Critical supply chain issues COST OF DELIVERING GREEN HYDROGEN/AMMONIA FROM AUSTRALIA TO JAPAN BY 2030 This is a critical path item for the Japan is building supply hydrogen industry to ensure cost chains to receive hydrogen Domestic Import from Australia competitiveness 8 in l
Slide 44: Global Production Capacity
Global Production Capacity BLUE HYDROGEN GLOBAL PRODUCTION CAPACITY, ANNOUNCEMENTS BY REGION Growing demand globally 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 North America Middle East Latin America Europe APAC Source: “Cost, logistics offer 'blue hydrogen' market ad
Slide 45: Appendix 2 - Other Projects
Pedirka Blue Hydrogen Project Appendix 2 - Other Projects 45
Slide 46: Hexagon's McIntosh Project
Hexagon’s McIntosh Project Highly prospective nickel and PGE targets with existing graphite Significant consolidate land package comprising 17 Exploration Tenements resources 542sqkm Similar geology that hosts the Savanah Nickel Mine* to the North, the Copernicus Nickel – Copper deposit* and Panton
Slide 47: Hexagon's McIntosh Project
Hexagon’s McIntosh Project Combined Graphite Resources 23.8 Million tonnes grading 4.5% TGC McIntosh Flake Graphite Project Mineral Resource as at March 2019 reported by deposit and above a 3% TGC cut-off grade JORC CONTAINED DEPOSIT TONNES (MT) TGC % CLASSIFICATION GRAPHITE (KT) Indicated 12.1 4.28
Slide 48: Hexagon's Alabama Project
Hexagon’s Alabama Project Entry into the North American battery supply chain • • • • Graphite content of up to 4.93% TGC bulk sample for marketing test work Pedirka Blue Hydrogen Project 48
Slide 49: Hexagon's Halls Creek Project
Hexagon’s Halls Creek Project High-grade gold targets and base metal prospects The Halls Creek Project involves thirteen granted tenements spanning approximately 430sqkm, hosting known gold and base metal surface mineralisation. HISTORIC SURFACE SAMPLING INCLUDES: Lady Helen Townsite Granite Bent Ri
Slide 50: Hexagon's Halls Creek Project
Hexagon’s Halls Creek Project 2021 Exploration Program First pass drilling planned Hexagon successful in its External historic for Bent Ridge, Townsite, application for co-funding Geochemical review Granite and Golden through the WA currently being undertaken Crown South prospects Government’s Explo
Slide 51: Further reading
Further reading Hydrogen: A renewable “Green hydrogen a major “Cost, logistics offer “Green or Blue Hydrogen: energy perspective IRENA, opportunity for GCC 'blue hydrogen' market cost analysis uncovers Sep 2019 market” Strategy-me, advantages over 'green' which is best for the 15 July 2020 alternati
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