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Friday 17.11.2023
In a significant move towards sustainable energy solutions, British multinational energy company BP and UK-based ITM Power are making substantial investments in Western Australia, particularly in the Kwinana region. These ventures aim to contribute to Australia’s decarbonization efforts and establish the country as a renewable energy superpower.
BP’s H2Kwinana project, located at the Kwinana Energy Hub, has achieved a crucial milestone by entering the front-end engineering & design (FEED) phase. With support from the Australian government’s Regional Hydrogen Hubs program, the project involves the deployment of a 100 MW electrolyzer, with potential expansion to 1.5 GW in subsequent phases.
The project also includes the installation of hydrogen storage, compression and truck-loading facilities, as well as upgrades to BP’s existing on-site hydrogen pipeline system. Once operational, the facility is expected to produce over 14,000 tons of green hydrogen annually for industrial use and heavy transport. The Kwinana site, a former oil refinery, is being transformed into an energy hub to produce green hydrogen and other renewable fuels, including renewable diesel and aviation fuel.
BP’s commitment to the region extends beyond the H2Kwinana project. The company has secured land for a proposed 10 GW wind and solar generation project and acquired a stake in the 26 GW Asian Renewable Energy Hub (AREH) project in Western Australia’s Pilbara region.
Simultaneously, ITM Power, in collaboration with German Linde Engineering, has conducted a business case study proposing the establishment of an electrolyser manufacturing facility in Western Australia. The facility, capable of producing 2 GW of electrolyser capacity annually, is recommended to be located at the Latitude 32 industrial zone near Fremantle Port.
The study suggests that such a manufacturing facility could add $200M annually to the state economy through associated services. Additionally, the creation of a local electrolyser system maintenance sector could generate $50 million in revenue each year, further contributing to the economic growth of the region.
The business case emphasizes the urgency for Western Australia to develop its electrolyser manufacturing capability to remain competitive against other jurisdictions in Australia. ITM Power estimates that the facility could be delivered in a 28-month period, provided there is government support, including renewable hydrogen targets, an initial co-investment of up to $50M , and ongoing electricity rebates or carbon offsets worth $5M annually.
The H2Kwinana project and the proposed electrolyser manufacturing facility have the potential to not only boost the state’s economy but also contribute to Australia’s position as a global leader in renewable energy. The proximity of the Kwinana Energy Hub & the Latitude 32 industrial zone near Fremantle Port creates a strategic synergy, fostering collabo
MaverickD, it seems the short sellers have been aggressively increasing their short positions in this stock over a short period of time, likely in an attempt to keep the share price depressed. However, the bank’s market capitalization is quite low at this point, and it's unlikely the shorts can sustain suppressing the price much longer. Typically when short interest builds up this quickly, it indicates the spring is coiling tightly and it won't take much more buying pressure before a short squeeze is triggered and the price spikes upward. So based on the current conditions, the shorts may be forced to start covering their positions soon, from experience the current situation is unsustainable.
The technical chart also displays a triple bottom pattern:
“A triple bottom pattern is a bullish reversal chart pattern that is formed at the end of a downtrend. It appears rarely, but it always warrants consideration, as it is a strong signal for a significant uptrend in price.”
The buying volume has been 4x times greater than the selling volume since the market opened this morning.