Elixir Energy (ASX:EXR) share price lifts 5% on hydrogen update

What's pushing Elixir Energy shares higher today? We take a closer look

| More on:
Group of children dressed in green hold up a globe relating to climate change.

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

The Elixir Energy Ltd (ASX: EXR) share price is surging forward during early afternoon trade on Thursday. This comes after the energy producer released an update in regards to its hydrogen strategy.

At the time of writing, Elixir Energy shares are up 5.36% to 29.5 cents apiece.

What did Elixir Energy announce?

In a statement to the ASX, Elixir advised progress is being made on its recently announced hydrogen project in Mongolia.

Elixir executed a memorandum of understanding (MOU) with Mongolia's Ministry of Energy to investigate the opportunity for a hydrogen project.

Under the framework, the Ministry will be responsible for maintaining security, stability, and efficiency in the energy sector. In addition, the department will seek to develop the new source of energy.

Elixir will work with the Mongolian government to bring forward expertise in the hydrogen economy in technical, legal, and commercial areas.

The news follows the company's commissioned independent report earlier this month from energy analyst, K1 Capital. The report evaluated the wind and solar resource potential of Mongolia's South Gobi region in regards to the production of green hydrogen.

It estimated a combined wind and solar utilisation of 79% for Elixir's project location. In comparison, the Southern Goldfields is generally between 50% and 60%, with the Pilbara region in Western Australia about 45%.

This means that a location with a capacity factor of 79% will produce around 60% more hydrogen from the same capital investment than an area with a 50% capacity factor.

A number of contributors underpin the high-capacity factor in the South Gobi region. They include very high wind speeds along with a cold climate supporting enhanced solar efficiencies.

Management commentary

Managing director Neil Young spoke about the news possibly fuelling the Elixir Energy share price today:

We are very pleased to be working with the Mongolian Government to investigate the potentially world class green hydrogen potential of the country.

The K1 Capital report supports our thesis that the South Gobi region of Mongolia has such potential – not only given its location immediately proximate to markets, but also its superb renewable resources. The wind and solar combination in our project area are as good as we have seen anywhere.

About the Elixir Energy share price

Over the past 12 months, Elixir Energy shares have registered gains of almost 130%. In contrast, the All Ordinaries Index (ASX: XAO) has travelled around 20% higher in the same time frame.

Elixir has a market capitalisation of roughly $267.3 million, with approximately 891 million shares on hand.

Should you invest $1,000 in Elixir Energy Limited right now?

Before you buy Elixir Energy Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Elixir Energy Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Aaron Teboneras has no position 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 Energy Shares

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Female oil worker in front of a pumpjack.
Energy Shares

Should you buy Woodside shares in May?

Is this energy giant a good investment right now?

Read more »

Hand holding out coal in front of a coal mine.
Energy Shares

Down 20% this year, are Whitehaven Coal shares a buy, hold or sell according to Macquarie?

Here’s what’s in store for this Australian independent coal producer.

Read more »

Rocket powering up and symbolising a rising share price.
Energy Shares

Guess which ASX uranium stock could rocket 45%

Big returns could be on offer from this stock. Let's see what Bell Potter is saying.

Read more »

A miner stands in front of an excavator at a mine site.
Energy Shares

3 ASX 200 uranium shares soaring 10%-plus today

What has got investors excited today?

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Woodside shares higher on 'game-changer' news

Let's see what the energy giant has announced on Tuesday.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Paladin Energy shares have surged 32% in 2 days. Macquarie says that's the tip of the iceberg

After a tough year, the future is looking brighter for Paladin Energy shares.

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Woodside shares storm higher on 'world-class operational performance'

Woodside has started the year in a positive fashion.

Read more »