NewHydrogen provides a promising update on its collaboration with the University of California Santa Barbara (UCSB). The partnership aims to pioneer a cost-effective method for producing green hydrogen, leveraging the revolutionary ThermoLoop technology.
NewHydrogen’s ThermoLoop technology presents a groundbreaking approach by utilizing heat instead of electricity to split water into hydrogen and oxygen. This innovative methodology holds the potential to substantially cut down the cost associated with green hydrogen production. The traditional method involves electrolysis powered by renewable energy, with green electricity costs constituting a significant portion (73%) of the overall production cost.
Steve Hill, CEO of NewHydrogen, underscores the critical nature of their work in overcoming this cost barrier, considering the enormous market opportunity estimated at $12 trillion. ThermoLoop could offer a more economically viable solution by tapping into inexpensive heat sources like concentrated solar, geothermal, nuclear reactors, or industrial waste heat.
Since August 2023, the UCSB research team has been diligently exploring new material systems and process designs for thermochemical water splitting. Their success in designing and constructing a reactor system test stand is a pivotal step forward. The team has achieved hydrogen production through a thermochemical reaction cycle, enabling the evaluation of synthesized materials under diverse conditions.
The thermodynamic screening methodology employed by the UCSB team identifies materials with suitable redox properties for the chemical looping redox process. Operating at industrial temperature ranges below 1000°C, the continuous loop process involves distinct steps for hydrogen production and material recovery, ensuring efficiency and sustainability.
Thorough studies of initial candidates involve quantifying their reduction and oxidation capabilities through thermogravimetric analysis. X-ray diffraction analysis provides critical insights into material changes during these processes. Additionally, the team is developing a thermodynamic model to explore solid-state phase change materials and high-temperature complex liquids.
While NewHydrogen’s innovative strides are commendable, a prudent investor should consider the company’s financial health and stock performance. With a market capitalization of $5.28 million, NewHydrogen is a smaller player, but its positive balance of cash over debt is an encouraging sign. However, challenges are evident as the company reports a negative P/E ratio of -0.94 and an operating income of -$5.73 million over the last twelve months.
Investors should note the stock’s substantial volatility, experiencing a 34% price drop in the last six months and nearly 49% over the last year. The InvestingPro Tip emphasizes that NewHydrogen’s stock typically trades with high price volatility. Despite these challenges, the company’s liquid assets surpass short-term obligations, providing some financial resilience.
As the green hydrogen market evolves, NewHydrogen’s ThermoLoop technology stands out as a potential game-changer. Investors looking for in-depth analysis can explore InvestingPro Tips on gross profit margins and price performance over the last decade. With a special New Year sale offering up to a 50% discount on InvestingPro subscriptions, there’s a valuable opportunity to gain insights and navigate the dynamic green hydrogen market.
