Source: Streetwise Reports
October 31, 2023 (Investorideas.com Newswire) This company is joining with a Kansas-based manufacturer to build its zero-emission hydrogen boiler. One analyst views this as an "opportunity" to pick up the stock before big gains.
Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FSE) announced it has signed a memorandum of understanding (MOU) with Kansas-based Superior Boiler to manufacture its zero-emission hydrogen boiler.
The Dynamic Combustion Chamber™ (DCC) boiler was designed by Jericho subsidiary Hydrogen Technologies. It burns hydrogen and oxygen in a vacuum chamber to create steam with no greenhouse gases or other pollutants.
Superior Boiler is a leading manufacturer of Scotch Marine Firetube boilers, industrial watertube, and high-efficiency boilers and equipment. It has shipped more than 21,000 boilers throughout the United States and worldwide.
"Superior Boiler is among the most respected and trusted manufacturers of boilers and thermal equipment globally," Jericho Chief Executive Officer Brian Williamson said. "They share our deep commitment to safety, quality, and the environment . . . Superior's Kansas manufacturing hub, located in the heart of the nation, is ideally positioned for efficient delivery of the DCC™ throughout all lower 48 states and beyond."
The DCC™ boiler's only by-product is water, which can be recycled. It's meant to replace existing boilers burning coal, natural gas, diesel, or fuel oil.
One analyst views the stock as an "opportunity," as it was down to CA$0.22 on Monday after hitting CA$0.33 last summer.
"We view the pullback as a buying opportunity ahead of boiler sales orders," wrote Nicholas Cortellucci of Atrium Research. "We continue to elect to value the investment at cost given the lack of visibility and await a value-creation event (i.e., takeout). Our estimates and valuation remain unchanged."
Cortellucci rated the stock a Buy with a target price of CA$0.50 per share, which would be a 127% gain.
Hydrogen is the most abundant molecule in the universe, but it doesn't occur by itself naturally on Earth and must be separated from water or hydrocarbon carbons using electrolyzers.
Newsletter writer Clive Maund of CliveMaund.com wrote for Streetwise Reports that hydrogen "is a fuel of the future" and that Jericho is "moving with the times."
The Catalysts: New Sales, Collaborations, Patent
The boilers are being considered for deployment at major facilities around the world, with feasibility studies completed at more than 30 sites to date.
Jericho recently announced Hydrogen Technologies' first U.S. boiler client, a major university that will deploy the DCC™ heating system.
The company noted in a release that Superior Boiler is "a leader in the facilitation of Green Energy solutions with boilers powered by alternative fuels."
"We recognize the market shift toward sustainable and renewable technologies to power tomorrow's boilers," Superior President and Chief Executive Officer Doug Wright said. "Our boiler expertise, with an emphasis on quality, coupled with HT's zero-emission technology, provides a winning combination."
Hydrogen Technologies is also collaborating with a "leading global alcoholic beverage company" to study using the boilers at production facilities in four countries and recently announced it was a partnership 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.
The company's European Union partner, Exogen Hydrogen Solutions, has signed an MOU with Lhyfe to offer decarbonization solutions for industrial steam, district heating, and mobility solutions powered by green hydrogen - and using DCC™ boilers - on that continent.
The U.S. Patent and Trademark Office also recently approved a patent for the boiler, with two more still pending as it begins to take orders.
History Repeating Itself?
Alternative fuel sources are gathering more attention as the world tries to break its reliance on fossil fuels. Possibly contributing to the urgency, the World Bank is warning that the war between Israel and Hamas in the Middle East could send oil prices soaring and create disruption comparable to the Arab oil boycott in the 1970s.
According to The Guardian, such a scenario could send the price of a barrel of oil from about US$90 to between US$140 and US$157. The previous record was US$147 a barrel in 2008, but that is also unadjusted for inflation.
"The latest conflict in the Middle East comes on the heels of the biggest shock to commodity markets since the 1970s - Russia's war with Ukraine," said Indermit Gill, the World Bank's chief economist. "That had disruptive effects on the global economy that persist to this day."
The shock would not be limited to energy costs but could also result in millions going hungry with higher food prices, the World Bank said.
The Arab oil embargo in 1973 brought an era of higher inflation and unemployment that ended the economy's post-World War II boom.
According to the International Energy Agency, hydrogen is a solution to meeting net-zero emissions goals in a new economy, and more projects are needed.
"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. [OWNERSHIP_CHART-7025]
It's 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," the council noted. "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$55.83 million, and it trades in a 52-week range of CA$0.44 and CA$0.21. It has 248.14 million shares outstanding, 178.38 million of them floating.
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