Peel Hunt7 Apr 2022 08:41
Chariot Ltd (AIM:CHAR, OTC:OIGLF)’s latest announcement is further evidence of the company’s evolution towards a broader transitional energy business, stockbroker Peel Hunt said in a note.
The company this morning said it had signed a memorandum of understanding with the Port of Rotterdam International as a first step towards establishing supply chains to import green hydrogen and ammonia into the Netherlands and northwest Europe.
Through the deal, the parties will work together to connect with off-takers and secure contracts for specific volumes.
“Today’s announcement in isolation may not on first pass appear too significant, but in our view it represents further evidence of Chariot’s corporate evolution towards a broader transitional energy business,” the stockbroker said in a note.
Peel Hunt repeated a ‘buy’ recommendation and a 35p price target which suggests more than 70% upside to the current price of 19.65p.
Benoit Garrivier, chief executive of Chariot’s Transitional Power unit, in this morning’s statement said its green hydrogen project in Mauritania has the potential to establish the country as one of the world’s cheapest producers.
“Our ambition is to help the nation become one of the world's main producers and exporters of green hydrogen.”
René van der Plas, director of Port of Rotterdam International, added: “The project could turn Mauritania into a leading supplier of green hydrogen to Europe, making it one of the largest energy projects of its kind in the world."