ATOME Energy hydrogen plans get ‘further validation’ from new Molecular Energies dual fuel venture.
ATOME Energy PLC (AIM:ATOM) will work in conjunction with a new venture set up by major shareholder Molecular Energies PLC (AIM:MEN, OTC:PPCGD) that will initially focus on Paraguay, supplying green hydrogen for transport.
Molecular Energies, a 25.2% shareholder in ATOME, announced the creation of Dual Fuel Limited (DFL), a new joint venture between its Green House Capital division and G-volution, an established UK dual fuel technology business.
DFL, which has been incorporated to help companies with the conversion of commercial diesel engines to run on a diesel and hydrogen mix, will work with ATOME to “provide users with an integrated package of dual fuel technology married to the availability of green hydrogen fuel, allowing customers to demonstrate important and immediate material emission reductions whilst maintaining the use of their existing fleet of vehicles”.
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DFL aims to have first prototype converted dual fuel vehicles running in the field by the end of 2023 and is initially focusing on Paraguay due to ATOME’s focus there and the favourable strategic and commercial environment.
Helped by December’s £3.7mln fundraising, ATOME is developing a 120MW green hydrogen production facility in the city of Villeta, which is expected to be the largest dedicated green ammonia facility in Latin America by the time it is operational in 2025. It expects to take receipt of its first 1MW electrolyser during the first half of this year.
Molecular Energies said the objective of DFL’s work will be to prove a market exists for providing vehicle dual fuel conversion within a 72-hour period by local mechanics, before rolling this service out into other countries in Latin America and worldwide, with ATOME “likely to be providing or procuring the necessary hydrogen supply, to provide a one-stop-shop solution”.
ATOME’s house broker Liberum said this was “further validation” of the company’s mobility division and “makes sound commercial sense given the existing relationship between the two companies”.
With ATOME due to receive its first 1MW electrolyser from Clean Power Hydrogen PLC (AIM:CPH2) during the first half of this year.
The analysts said this collaboration:
Could serve to expediate a larger and more immediate market for ATOME’s generated hydrogen.
“We are also of the view that the Paraguayan government will welcome this latest development. Imported fuels such as diesel and gasoline cost Paraguay US$1.3bn per annum, and due to the elevated price of hydrocarbons over the past year, the government has had to triple its diesel subsidies.”
ATOME Energy hydrogen plans get ‘further validation’ from new Molecular Energies dual fuel venture, January 5, 2022
