Hydrogen Future Industries PLC (HFI )
Hydrogen Energy is cleaner, low carbon and cheaper alternative source to fossil fuels. It can be used in mass market such as fuel for transport, heating buildings etc. It could provide the lowest cost decarbonisation solution alternative energy comparable with solar and wind power. The Hydrogen Council, estimate the market will be worth $2.5 Trillion by 2050 which would be 18% of global energy demand.
HFI are developing patented technologies for the wider hydrogen production cycle from the supply of wind power to the Electrolyser (see appendix) and storage and distribution applications.
The acquisition of IP in May 2023 completed the suite of it International Patents paid with 1.4m shares at 10p and has significantly enhanced the IP portfolio. The patents are derived from over 12 years of valuable research by Tim Blake including the key aspects of the novel green hydrogen production system.
There are five key technologies in development and commercialisation stages each with the potential to become industry standards.
- Ducted wind turbine design, which is smaller, quieter, and more efficient than existing technology and as it has no gearbox or generator this reduces the weight so it’s also easier to install etc. It has increased energy generation of over 300% in wind tunnel testing and now in Phase 3 the energy output is being independently verified.
- Smart Hydraulic Drive, is a variable pump that replaces the gearbox in wind generation and should lead to increased efficiency, reliability, and reduced maintenance. It is being developed in Birmingham.
- Dynamic Tower is an automated telescopic tower that optimises wind farm turbine energy production as the towers can operate at different heights so the cluster patterns can be tighter. The installation costs are reduced as this is done at ground level, and it uses a variation of the Smart Hydraulic Drive.
- 4. The electrolyser is a core component (see appendix). HFI’s innovation is using abundant alternate materials other than rare earths and costly platinum group metal catalysts,. The encouraging data shows increase longevity and power at a reduce cost. The concept is being tested in California.
- Hydrogen production, compression, and storage – this generates hydrogen from a choice of waterfeeds such as waste, contaminated water, which is dedicated by the location e.g, offshore, industrial, or at an energy consuming mine. The storage of the energy is an integral part of the system and uses the pump for compression. This type of storage is at a fraction of the price of lithium-ion batteries.
Comment: The technologies are interrelated but could have wider commercial applications beyond HFI’s systems. This should lead to collaborations and JV with end users as well as manufacturers.
Interim 6 months April
At this pre -revenue stage is about investing in developing the IP of its technologies which are expected to enhance the value when catalysed in a JV, Sale or licensing deal.
The NAV is £1.34m with net cash of £736,000 not reflecting the IP development.
The investment made is £710,344 (losses) with net cash outflow of £641,300 this expenditure can be capitalised.
Development Road Map
1 meter diameter protype energy Testing 8-12 energy output test
Development of Hydraulic smart drive for wind turbines
5-meter Diameter protype testing
- Newsflow from development of its IP and clear communication of its significance
- After encouraging energy output data, the wind turbine is likely to be scaled up to a 5 metre which then becomes a commercial proposition to energy users such as mines.
- Collaboration with technology partners could offer material markets opportunities.
- Proactive marketing of its technology to trade as well as investors.
- The partnering strategy gives low-cost entry to some large markets and the potential for growth is considerable.
- Technical collaborations and seeking grants will lower the equity dilution.
- Seek EIS and specialist funding partners.
Comment: The Mkt cap of £2.75m does little to reflect the potential commercial opportunities for each of the individual technologies let alone for the suite of them.
|Share in Issue||47.75m|
|Net Cash (Debt)||Net Cash £736k|
|Next Results||Finals to July RNS Dec|
|Last Results||Interims to January||Acquisition of patients
Investment in R&D
Net cash £736k
Burn rate £70k Pm
|Last Funding||May 2023||14m at 10p|
|Investment||Tower Green Holdings Limited a developer of hydrogen production and distribution facilities which is establishing multipurpose hydrogen hubs in the southwest of England to provide energy storage and hydrogen as a fuel.|
|IPO||Dec 2021||10p £2.23m raised|
David Lenigas 4.4%
Seb Marr 4.17%
Clive Roberts 3.14%
Sanderson Capital 3.14%
Electrolytic hydrogen is produced by applying electricity to split a pure water source into its component molecules of hydrogen and oxygen. Electrolysers, or more precisely electrolyser stacks, are the primary electrochemical component in an electrolytic hydrogen production system.