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.
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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.
