PRL Completes PFS, Updates Project Timelines
Today we got a rare update from our small cap hydrogen Investment Province Resources (ASX:PRL).
PRL has been suspended from trading for over a year now with the goal to re-comply as a “hydrogen” company.
The ASX has been grappling with a rush of “hydrogen” companies ever since the energy source first made waves on the index in 2021 as governments around the world started looking seriously at incentivising hydrogen production.
We view PRL as the company most likely to make green hydrogen a reality on the ASX, and as an early mover in this sector PRL is breaking new ground for the market operator.
The company did not provide an update on re-listing, however we can assume that as the project progresses and becomes more “real” (through feasibility studies, licences, investment and government support, etc…) PRL will get closer to re-listing.
The company has a number of key permits on the horizon including a S.88 licence and Indigenous Land Use Agreement.
Both of these will be necessary to commission and construct its project.
Since ending the relationship with Total Eren last year, PRL has scaled back the scope of the project.
Now, PRL intends to build a “small scale” version of its hydrogen project, prove that it can work economically, and then scale up in the future.
We think that this strategy is more appropriate given the higher interest rate environment.
This small scale project is scheduled for FID at the start of 2025.
The company still has $11.8M in the bank, which should carry it through to this timeframe.
Tassie Hydrogen Project gets $70M in funding
On a positive note for the hydrogen industry and a show of commitment by the Australian government, Tassie has secured $70M in funding for a “hydrogen hub”.
(Source)
The goal of the project is to be operational by 2028 and produce 45,000 tonnes of renewable hydrogen per year.
We think that this project is a sign of the Labor government's support for hydrogen, and it will be a real test for the industry if a project like this can be delivered on time and within budget.
