Altima Resources (TSXV: ARH) partnered today with St-Georges Eco-Mining Corp (CSE: SX) and its subsidiary H2XS for hydrogen production using nanocarbon technology.
Hydrogen production is relevant because it is a clean and renewable energy source that can be used to power vehicles, generate electricity, and provide heat. Hydrogen is also a key component in the production of many industrial chemicals and materials. Additionally, hydrogen can be used to store energy from renewable sources such as solar and wind, making it an important part of the transition to a low–carbon economy.
Light–duty fuel cell electric vehicles can achieve a driving range of over 300 miles on a single tank of hydrogen fuel, according to the U.S. Department of Energy‘s Fuel Cell Technologies Office website. This makes it a viable alternative energy source in the fight against climate change.
H2XS’s hydrogen production tech works because of a process called steam methane reforming (SMR). In SMR, methane reacts with steam under pressure to produce hydrogen, carbon monoxide and carbon dioxide.
The carbon monoxide and steam react using a catalyst producing produce carbon dioxide and hydrogen. Afterwards, another process involving removing carbon dioxide and other impurities from the gas stream leaves pure hydrogen behind. Also, steam reforming produces hydrogen from other fuels, like ethanol, propane or even gasoline from the same methods.
H2XS’s process deviates from this only slightly. It’s based on the separation of the methane molecule from natural gas into gasseous hydrogen, the company’s proprietary ccH2 molecule, and high purity carbon powder.
“We look forward to working with H2SX in moving this exciting zero greenhouse gas (CO2) emission hydrogen production technology, into commercialization and for other prospective green tech opportunities that could benefit from utilizing low-cost green hydrogen,” said Joe DeVries, president & CEO of Altima Resources.
Altima agrees to finance and co-operate the plant
The deal also includes the construction and operation of a hydrogen processing facility using the patented technology. Altima will finance and co-operate the plant in addition to bringing in the gas from the wells it operates presently and in the future.
Also, all capital expenditures will be reimbursed to Altima prior to any profit sharing between the joint venture parties.
Additionally, Altima will be responsible for providing and managing the natural gas input into the joint venture operation. In return, it will receive credits for the sale of hydrocarbons to the green hydrogen through this producing joint venture.
Under the terms of the agreement, Altima delivers six million common shares to H2SX when certain milestones are met.
H2SX receives two million shares when Altima delivers the preliminary technology engineering report. After which, H2SX receives another two million shares after the delivery of the engineering report tailored to Altima’s initial project.
Also, two million shares after a preliminary economic assessment or prefeasibility study.
H2SX will also receive a 5 per cent net revenue royalty from a royalty agreement.
In 2021, the global hydrogen generation market size was estimated at USD $129.85 billion. Grandview Research expects it to reach USD $136.96 billion this year.