This ASX small cap stock is surging 9% on big Fortescue news

Let's see what is putting a rocket under this tech stock on Tuesday.

| More on:
Man drawing an upward line on a bar graph symbolising a rising share price.

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

Sparc Technologies Ltd (ASX: SPN) shares are having a strong session on Tuesday.

At the time of writing, the ASX small cap stock is up 9% to 19 cents.

Why is this ASX small cap stock jumping?

Investors have been buying the environmental technology company's shares after it released some big news relating to mining giant Fortescue Ltd (ASX: FMG).

According to the release, Sparc Technologies, Fortescue, and the University of Adelaide (UoA) will proceed to Stage 2 of the Sparc Hydrogen joint venture.

The ASX small cap stock notes that the decision to proceed to Stage 2 reflects several key milestones achieved over recent months. Management believes it is a strong endorsement of the potential of Sparc Hydrogen's novel technology to unlock low-cost green hydrogen via photocatalytic water splitting (PWS).

What's next?

The company revealed that Stage 2 activities will be focused on pilot plant construction and reactor testing along with ongoing laboratory testing of PWS reactors under a range of conditions.

Management believes that the pilot plant will represent a globally leading facility for R&D and commercialisation of PWS reinforcing Sparc Hydrogen's first mover position in this emerging direct solar to hydrogen technology.

Commenting on the news, the ASX small cap stock's managing director, Nick O'Loughlin, said:

Sparc Technologies is very pleased to be pursuing Stage 2 of the Sparc Hydrogen joint venture alongside its supportive world class partners. A significant amount of work has gone into this positive investment decision which is a reflection on the R&D team, strong IP position and high potential of the technology to unlock low cost green hydrogen without relying on electrolysers, stretched electricity grids and related infrastructure.

This sentiment was echoed by Fortescue's director of research & development, Michael Dolan. He commented:

Fortescue is proud to continue its support of Sparc Hydrogen and its innovative photocatalytic water splitting technology. This Australian innovation has the potential to make green hydrogen an even more competitive energy resource by decoupling its cost from the cost of green power. The Phase 2 pilot plant will enable this promising technology to be evaluated at a meaningful scale ahead of potential commercial deployment in the future.

Based on the current schedule, the pilot plant construction completion is expected in mid-2025.

Once built, the plant will allow Sparc Hydrogen to independently and concurrently test different reactor designs and photocatalyst materials. It believes this will be the first of its kind.

Should you invest $1,000 in De Grey Mining Limited right now?

Before you buy De Grey Mining 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 De Grey Mining 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 6 March 2025

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Small Cap Shares

A man clenches his fists in excitement as gold coins fall from the sky.
Small Cap Shares

3 top small cap ASX shares that brokers are tipping for big things

Let's see which small caps are being tipped as buys by brokers.

Read more »

A little girl wearing wonky glasses checks out what's happening in the world on a mobile phone.
ETFs

Why ASX ETFs are a threat to small-cap funds

Experts are concerned about investment capital inflows.

Read more »

Kid putting a coin in a piggy bank.
Small Cap Shares

2 ASX small-cap shares to buy with big potential

Experts reckon these small businesses have big potential.

Read more »

A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.
Small Cap Shares

Why this ASX small cap stock just rocketed 145%

Why are investors getting excited about this stock? Let's find out.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Small Cap Shares

Why this Telstra-linked ASX small cap stock just crashed 90%

This small cap is having a very bad session. What's going on?

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Small Cap Shares

The ASX small-cap stock trading at 'half of the earnings multiple of industry leaders'

A leading fund manager sees a lot of untapped value for this soaring ASX small-cap stock.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Small Cap Shares

These small cap ASX stocks could rise 15% to 70%

Analysts think big returns could be on the cards for buyers of these stocks.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Small Cap Shares

2 under-$5 ASX hidden gems worth your attention

These buy-rated shares are flying under the radar. Let's see why analysts are bullish on them.

Read more »