After completing a $6.2 million placement, Hexagon has received funding to expedite the pre-feasibility analysis for its Pedirka blue hydrogen project in the Northern Territory.
The placement of shares at 11c each, reflecting a 9.5% discount to the 30-day volume weighted average price of the company’s shares, also demonstrates institutional and sophisticated investors’ strong support.
The Pedirka project encompasses 800 square kilometers of coal tenements located 200 kilometers southeast of Alice Springs in the Pedirka Basin of the Northern Territory.
Hexagon intends to use the coal as a feedstock for a gasification plant that will generate hydrogen from coal for export or domestic use.
The company will manufacture renewable hydrogen using a zero-carbon emissions steam reformation process due to its proximity to established oil and gas infrastructure, which offers advantages for large-scale hydrogen production.
Carbon dioxide emissions can be collected and buried, or used in enhanced oil recovery schemes.
The organization has met with Technip Energies subsidiary Genesis many times to discuss the scope and format of the PFS in order to formalize project planning and PFS timing.
It was noted that these talks had already revealed considerable cost reductions for the PFS program compared to original budget projections, resulting in a significant reduction in the amount of money needed to complete the report.