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HYTERRA LTD — Investor Presentation 2024
Oct 16, 2024
65084_rns_2024-10-16_5dc878d9-4d50-4e69-8fae-70a6af332095.pdf
Investor Presentation
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A WORLD OF OPPORTUNITY
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IMPORTANT INFORMATION
No distribution in United States or other jurisdictions outside Australia.
Non-IFRS Financial Information
Competent Person Statement Information –
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
A WORLD OF OPPORTUNITY
Nemaha Project, Kansas USA
*Guelard J, Beaumont V, Guyot F, Pillot D, Jezequel D, Ader M, et al. Natural H2 in Kansas: deep or shallow origin? Geochem Geophys Geosyst G3 2017; 18; Coveney, R. M. J., E. D. Goebel, E. J. Zeller, G. A. M. Dreschhoff, and E. E. Angino (1987), Serpentization and origin of hydrogen gas in Kansas, Am. Assoc. Pet. Geol. Bull., 71(1), 39–48. H2 + He + N% reflects occurrences of published gas analyses recovered from the wellbore. Uncertainty remains on historic well operations, sampling techniques, and analyses. The values are considered up to a % of H2 or He.
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
HYDROGEN IS THE WORLD’S WONDER ELEMENT
Today, hydrogen is used to refine petrochemicals and produce ammonia and methanol.
Tomorrow, it will be a low-carbon fuel option for transportation, manufacturing, and used to generate electricity.
1Source: https://www.mckinsey.com/industries/oil-and-gas/our-insights/global-energy-perspective-2023-hydrogenoutlook
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Current uses of hydrogen
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Petrochemicals Fertiliser/ammonia Methanol Food
and refining production production production
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Emerging uses of hydrogen
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Transport Power Heat source Steel and cement
generation alternatives production
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
MADE BY NATURE
Cleaner, greener, and cheaper to produce using conventional oil and gas techniques, white hydrogen could revolutionise industry and economies worldwide
underground and flows eastward across the helium enriched Hugoton Basin. When the water reaches the iron-rich mafic source rocks in Kansas (MidContinental Rift), the hydrogen is then split from this water. Then, the molecules migrate upwards into various traps along the Nemaha Ridge. Here, both hydrogen and helium occurrences were recovered in
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. White hydrogen and helium is created naturally by the Earth[#]
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3Fe + 4H2O = Fe3O4 + 4H2
Source
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Traps
Reaction
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
WHITE HYDROGEN COULD HAVE THE LOWEST PRODUCTION COSTS AND CARBON EMISSIONS
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Grey Hydrogen
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White Hydrogen
Naturally occurring, found in the subsurface.
Made from natural gas. H2 separated from CH4. Carbon emissions not captured.
Hydrogen made underground.
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~9.0kg CO2e per kg H2 [#]
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<1.0kg CO2e per kg H2
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Green Hydrogen Made by using renewable energy to electrolyse water. H2 separated from H2O. Production is expensive. <1.0 kg CO2e per kg H2[#]
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Blue Hydrogen
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Made from natural gas. H2 separated from CH4. Carbon emissions captured.
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~3.0kg CO2e per kg H2 [#]
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*Geologic hydrogen (white) has a carbon intensity of 0.37 kg CO2e per kilogram of hydrogen when including the embodied emissions of the well casing and hydrogen emissions, according to a published paper in Joule by Stanford's Dr. Adam Brandt.
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Modified from https://koloma.com/geologic-hydrogen/. Values obtained from 2022 GREET Model. Carbon intensity of hydrogen production for natural hydrogen was calculated based on Brandt, A. Greenhouse Gas Intensity of Geologic Hydrogen Produced from Subsurface Deposits. 2023. EarthArXiv preprint. https://doi.org/10.31223/X5HM1N”. Calculation maintained consistency with GREET methodology. https://gh2.org/our-initiatives/gh2-green-hydrogen-
standard#:~:text=Green%20hydrogen%20is%20hydrogen%20produced,a%2012%2Dmonth%20period
Hydrogen production cost ranges 2022-2023[^] , $US
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$4.5-6/kg+
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$2-5/kg
$1-3/kg
<$2/kg
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^ Numerous ranges of production costs exist due to changing variables such as, but not limited to, technology advancement, existing infrastructure, feedstock price etc Source: Ranges sourced from BloombergNEF, IEA, Lazard, IRENA. ‘At the dawn of a hydrogen era’, Clota Varde Feb 2023,
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
HYTERRA
Exploring white hydrogen and helium resources near major industrial hubs.
*Guelard J, Beaumont V, Guyot F, Pillot D, Jezequel D, Ader M, et al. Natural H2 in Kansas: deep or shallow origin? Geochem Geophys Geosyst G3 2017; 18; Coveney, R. M. J., E. D. Goebel, E. J. Zeller, G. A. M. Dreschhoff, and E. E. Angino (1987), Serpentization and origin of hydrogen gas in Kansas, Am. Assoc. Pet. Geol. Bull., 71(1), 39–48. H2 + He + N% reflects occurrences of published gas analyses recovered from the wellbore. Uncertainty remains on historic well operations, sampling techniques, and analyses. The values are considered up to a % of H 2 or He.
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Aggregated Net Recoverable Prospective Helium Volumes (bcf)[#] P90 P50 P10
Aggregated Net Recoverable Prospective Hydrogen Volumes (bcf)[#]
P90 P50 P10
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Source: Great Plains Institute, 2022 (Modified by HyTerra)
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Cautionary Statement: The estimated quantities of natural hydrogen and helium that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal, and evaluation is required to determine the existence of a significant quantity of potentially recoverable natural hydrogen and helium. The Prospective Resource estimates are quoted on an unrisked basis and are aggregated arithmetically by category. Please refer to the ASX release dated 13 December 2023 and June 30[th] Quarterly Activities report for full details with respect to the Prospective Resource estimate, associated risking and Cautionary Statement.
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
Fortescue to acquire a strategic 39.8% interest in HYT at A$0.034 per share for a total of A$21.9m, subject to shareholder approval.
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
NEMAHA PROJECT
Acreage is 100% owned and operated by HyTerra Approx 52,000 acres with infill leasing continuing
Acreage is geologically contiguous to several historic well occurrences and connected via existing transport infrastructure
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
NEMAHA PROJECT
Range of shallow to deeper targets
Existing permitted well sites Additional locations
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
NEMAHA PROJECT
Two examples. Final well selection is made after additional leasing and permitting is completed
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(permitted) (permitted)
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Hydrogen Helium <92% <3% <92% H2 <3% He[] <56% H2*
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*Guelard J, Beaumont V, Guyot F, Pillot D, Jezequel D, Ader M, et al. Natural H2 in
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Hydrogen Kansas: deep or shallow origin? Geochem Geophys Geosyst G3 2017; 18;
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<56% Coveney, R. M. J., E. D. Goebel, E. J. Zeller, G. A. M. Dreschhoff, and E. E. Angino (1987), Serpentization and origin of hydrogen gas in Kansas, Am. Assoc. Pet. Geol. Bull., 71(1), 39–48. H2 + He + N% reflects occurrences of published gas analyses recovered from the wellbore. Uncertainty remains on historic well operations, sampling techniques, and analyses. The values are considered up to a % of H2 or He.
Two well sites nearby historic wells are planned to be drilled significantly deeper
Sue Duroche-2[*] 2009
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Scott-1[*] 1982
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
A VALUE CHAIN
Several local commercialisation pathways to develop.
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2023 global ammonia market [1]
Hydrogen
~US$80B
2032 forecast of global ammonia market [1]
Ammonia plant Green fertiliser ~US$120B
Nitrogen
NH
3
Wells
2027 forecast of global helium market [2]
Helium
~US$6.5B
Truck MRI Electronics Metal Fab
1https://www.statista.com/statistics/1391399/global-
ammonia-market-size/
2https://www.statista.com/statistics/1411790/marke
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- 2https://www.statista.com/statistics/1411790/marke t-value-the-helium-industry-worldwide/
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
US GOVERNMENT RECOGNISES WHITE HYDROGEN POTENTIAL.
US Senate holds first congressional hearing 28 February 2024 on white hydrogen.
new 10-year incentive for clean hydrogen of up to $3.00/kilogram. The level of the credit provided is based on carbon intensity, up to a maximum of four kilograms of CO2-equivalent per kilogram of H2.[3] US Department of Energy (DOE) announced up to $20 million in funding to develop technologies that can stimulate the generation of hydrogen within the subsurface at the lowest cost and environmental
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https://www.energy.senate.gov/services/files/A4A4CFF
6-A4E4-4D07-A39A-F046322266F5
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The potential for geologic hydrogen “ represents a paradigm shift in the way we think about hydrogen as an energy source. Dr Evelyn Wang, Director of the Department of Energy’s Advanced Research Projects Agency – Energy (ARPA-E). 28 February 2024, Senate Committee on Energy & Natural Resources https://www.energy.senate.gov/services/files/A4A4CFF6-A4E4-4D07-A39A-F046322266F5
WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
HYTERRA LTD
Strong news flow ahead from drilling campaign results and rapid growth of hydrogen and helium resources.
Portfolio
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Current workplan
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Fortescue fully funded workplan (subject to shareholder approval)
WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
BOARD & MANAGMENT
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Benjamin Mee
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Dr Avon McIntyre
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HyTerra’s executive team has proven experience in developing oil and gas projects around the world.
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Russell Brimage
Dr Dirk Smit
Dr Jeff Goodall
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
A WORLD OF OPPORTUNITY.
HyTerra is advancing hydrogen and helium projects in the heart of an established agriculture and manufacturing hub
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WHITE HYDROGEN. A WORLD OF OPPORTUNITY.
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Benjamin Mee
Avon McIntyre
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https://twitter.com/HyTerra _ASX
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https://www.linkedin.com/ hyterra.com.au company/hyterra-ltd/