Province Resources (ASX:PRL) share price jumps 7% on hydrogen update

Shares in the green hydrogen player are soaring today.

| More on:
A graphic of a tree and a green leafy capital letter H on a blue sky background, indicating a share price rise for ASX companies dealing in hydrogen energy

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Province Resources Ltd (ASX: PRL) are gaining steam today after the company announced a key update on a planned hydrogen study.

The Province Resources share price is currently trading at 15.2 cents after earlier hitting an intraday high of 15.5 cents, up 7%. Here's what we know.

Province Resources to start hydrogen study

The company advised that energy transition company Global Energy Ventures Ltd (ASX: GEV) is set to start an export feasibility study on Province's HyEnergy Zero Carbon Hydrogen project.

Three consultant companies have been appointed, including engineering company WSP as project lead, Environmental Resources Management (ERM) for environmental management, and port developer Oropesa for offshore terminal design.

Province Resources said the HyEnergy export study objective was to "demonstrate the technical feasibility and commercial advantages of Global Energy's compressed hydrogen shipping solution".

It will analyse the requirement of a fleet of the Global Ventures' compressed hydrogen ships, including a 430-tonne pilot sale ship, and a 2,000-tonne commercial-scale ship under the company's fleet.

It will also focus on how best to integrate Province's proposed green hydrogen production facility with an onshore compression facility.

This will be built out with an offshore mooring and loading system, alongside the operation of a fleet of "compressed hydrogen ships for marine transport to nominated markets in Asia Pacific".

Both of these moves are in an attempt to construct a viable export solution, using Province's green hydrogen, and Global Energy's compressed hydrogen ships.

Global Energy anticipates the study to be completed by midway next year, according to the release.

Backgound on the project

The announcement builds on previous work at the HyEnergy project, where Province received a Section 91 licence to commence on-ground project studies at the site around a month ago.

There was little change in pricing levels for Province Resources' share price afterwards, as it finished the 7 days afterwards flat at 16.5 cents.

However, it appears to be a different story today, as investors continue buying the company's shares and push its market capitalisation to $163 million.

Province Resources share price snapshot

The Province Resources share price has soared into the green this year to date, gaining almost 1,100% since 1 January.

Over the 12 months, it has climbed 1,360%, but still trades well off its 52-week high of 21 cents back in April this year.

Nonetheless, these results have far outpaced the S&P/ASX 200 index (ASX: XJO)'s return of about 25% this past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Miner holding cash which represents dividends.
Dividend Investing

Invested $8,000 in Fortescue shares 5 years ago? Guess how much passive income you've banked!

Fortescue is popular among passive income investors for paying two fully franked dividends per year, even during COVID.

Read more »

Miner looking at a tablet.
Resources Shares

BHP shares are up 9% in a month. Are they still good value?

Is Australia’s largest miner a big opportunity?

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »