Hydrogen explorer hits gold with float

THE Alexander Downerchaired Gold Hydrogen has listed on the Australian Securities Exchange at a premium.

The company is exploring naturally occurring hydrogen in South Australia. It was granted an exploration licence in 2021 covering Kangaroo Island and Yorke Peninsula, where potential gas resources could total 1.3 billion kilograms – enough to power one million homes for 40 years.

Gold Hydrogen’s Friday listing raised $20m at 50c a share to continue exploration activities and begin drilling by the third quarter of 2023.

The stock hit the boards at 55c.

Mr Downer, Australia’s former foreign affairs minister, said confirmation of the existence and potential commercialisation of this hydrogen would be an Australian first.

“Hydrogen is going to become a very important part of Australia’s energy mix and the global energy mix,” he said.

Unlike blue and green hydrogen, which require another power source to create energy, Mr Downer said naturally occurring hydrogen would be “much cheaper”, with company forecasts showing the production cost of natural hydrogen about 50c a kilogram, “compared to an initial forecast of $3/kg to $9/kg for manufactured hydrogen’’.

Mr Downer said there were likely “huge reserves of natural hydrogen” across Australia.

“We don’t know how much is there,” he said. “This has the potential to drive a significant hydrogen economy in South Australia and beyond.”

The newly listed company’s focus will remain on the Yorke Peninsula and Kangaroo Island, where natural hydrogen was discovered almost accidentally 100 years ago.

Mr Downer said while the company’s focus would initially be on domestic supply, exports to Japan and elsewhere could be among its future plans.