The Province Resources Ltd (ASX: PRL) share price ripped as much as 460% on 17 February after the acquisition of a Zero Carbon Hydrogen project located in the north of Western Australia.
After surging from 2.6 cents to a high of 14.5 cents, its shares cooled off in recent days to around the 8.5 cent range.
Today, the Province Resources share price has soared again, up 10.47% to 9.5 cents at the time of writing. This after the company announced the start of its feasibility studies data collection at the Zero Carbon Hydrogen project.
Why the Province Resources share price is lifting again
Province Resources announced that it has secured the normally long lead time Fulcrum3D SODAR (sonic detection and ranging) weather monitoring station.
The monitoring station will be deployed in the next 4 weeks at its HyEnergy Zero Carbon Hydrogen project for data collection required to support feasibility studies.
The station plays a critical role in collecting preliminary wind and solar data every 10 minutes within the project area to assess the wind and solar resource potential. The data collected will enable the proposed wind turbines and solar array network to be optimised, prior to the final project scope and scale decision point.
The Carnarvon region in Western Australia possesses significant solar and wind potential. Its annual mean wind speed of 25.5 km/h makes it the 4th windiest location in the state. Furthermore, the region does not have the same record of risks such as cyclones compared to high profile mining regions such as Pilbara, making it a low-risk wind farm location.
In terms of solar, the region has a very rich solar resource averaging 211 sunny days per year. Low competing land use and high solar resource are ideal for a large scale solar array network.
The next 12-18 months
Province Resources has already hit the ground running with renewable power generation feasibility studies.
Following the studies, the company has cited plans to execute a binding memorandum of understanding (MOU) with an independent power provider to develop the renewable power required for the plant. As well as initiate discussions with potential offtake agreements and with the Australian Gas and Infrastructure Group.
Based on the current Province Resources share price, the company has a market capitalisation of $80.8 million.
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More reading
- Broker rates these 3 small cap ASX shares as a speculative buy
- 4 ASX hydrogen shares powering forward in 2021
- Here’s why the Province Resources (ASX:PRL) share price has powered up 253% today
Motley Fool contributor Kerry Sun 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 Bruce Jackson.
The post The Province Resources (ASX: PRL) share price zooms 10% higher today. Here’s why appeared first on The Motley Fool Australia.
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