The Tlou Energy Ltd (ASX: TOU) share price has been a very strong performer on Thursday.
In early trade, the clean power solutions company’s shares were up as much as 64% to 10.2 cents.
The Tlou share price has since pulled back a touch but remains up 36% to 8.4 cents at the time of writing.
Why is the Tlou share price rocketing higher?
Investors have been bidding the Tlou share price higher today after it provided an update on its Lesedi Power Project.
According to the release, Tlou and its hydrogen technology partner Synergen Met are working on combining large, established natural gas reserves with abundant solar energy to produce green hydrogen. It notes that this will provide a complementary range of cleaner and greener power generation options.
The release explains that the company has secured a 10MW Power Purchase Agreement (PPA) with Botswana Power Corporation. The power dispatched under this PPA will help displace existing carbon‐intensive power.
What’s next?
The prototype hydrogen production unit is being designed, built and tested in Brisbane prior to transportation to Lesedi in first half of 2022, when production trials will commence.
Management notes that the successful production of hydrogen and solid carbon products could allow the company to achieve early‐stage revenue ahead of gas‐to‐power revenue under the 10MW PPA.
The construction of transmission lines to connect Lesedi to the existing power grid is expected to be completed in 2023.
Tlou’s Managing Director, Tony Gilby, said: “Tlou is well advanced in terms of approvals and agreements to commercialise our gas. With continued encouraging gas flows from Lesedi and the development of additional ways to monetise our gas, we are about to enter a very exciting time for our company. With the potential for Synergen Met to grow alongside Tlou, we see the development of a mutually rewarding and highly beneficial relationship.”
The post Tlou Energy (ASX:TOU) share price skyrockets 64% on green hydrogen update appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.
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