Pure Hydrogen (ASX:PH2) has highlighted its 19.99% stake in the issued capital of upcoming ASX entrant Botala Energy expected to commence trading next month.
On the back of the news, Pure’s shares are up nearly 7% heading into the final hour of trade.
Botala’s flagship project will be Coal Bed Methane (CBM) gas exploration in Botswana at the Serowe project, of which Botala will acquire an additional 21% interest.
Pure Hydrogen retains a 30% interest.
Pure Hydrogen notes many of its shareholders have assisted Botala meet its $5m target with the former participating in the capital raise process.
The company also adds commencement of ASX trading by Botala still requires further approval from Botala itself, and the Australian bourse.
Between the lines, it’s clear Pure Hydrogen and Botala will investigate the logistics of producing hydrogen with gas from Botala’s Serowe CBM project.
This is evidenced by Pure Hydrogen’s note today any hydrogen production facilities constructed in Botswana will likely require significant expenditure.
Should Pure Hydrogen seek to develop a hydrogen facility in Botswana, leveraging Botala’s CBM project, it is more than likely hydrogen produced on-site will be considered ‘grey.’
Whereas ‘green’ hydrogen is that produced by renewables-powered electrolysis, ‘grey’ hydrogen refers to that created by the steam reformation of methane.
Both companies jointly hold ambitions to develop renewables-based energy in South Africa, at some point in the future.
At this time, no specific projects or investments have been guaranteed by either entity.
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