Member Info for Cheddars

Thanks Malachi,
I come from an aviation finance background so can't comment on your observation. However, I will try and find out more as we do need a balance.

The opening paragraphs from an article in yesterdays Airline Economics online bode well!

Hydrogen is the great hope for the future of air travel in a net zero world. Today, the Aerospace Technology Institute (ATI), which is a joint government and industry effort to develop a range of advanced technologies with the aim of reducing aviation’s environmental impact, has revealed the concept design of a hydrogen-powered aircraft that could fly up to 279 passengers “anywhere in the world with no carbon emissions and just one stop”

Developed by a team of aerospace and aviation experts from across the UK collaborating on the government backed FlyZero project, the concept demonstrates the potential of green liquid hydrogen for air travel not just regionally or in short haul flight but for global connectivity. Liquid hydrogen is a lightweight fuel, which has three times the energy of kerosene and sixty times the energy of batteries per kilogramme and emits no CO2 when burned.

Realising a larger, longer range aircraft also allows the concentration of new infrastructure to fewer international airports accelerating the rollout of a global network of zero-carbon emission flights and tackling emissions from long haul flights.

FlyZero project director Chris Gear said: “This new dawn for aviation brings with it real opportunities for the UK aerospace sector to secure market share, highly skilled jobs and inward investment while helping to meet the UK’s commitments to fight climate change.”

The 14,123,187 sale to which you refer is in fact a UT or uncrossing trade which Shifting Shares defines as "An uncrossing trade will occur at the end of an auction’s call period if there is a match between the prices of both the bid side of the market and the ask side. It is the closing price for the auction on the LSE.
For example, if there is a price where both the seller and buyer can be satisfied, then the auction will disclose an indicative uncrossing price.
The indicative uncrossing price shows the price where the auction will uncross if there are no further orders or modifications to existing orders on the order book."

Consequently I believe that your fears are totally unfounded.
Good luck to all long term holders.

An interesting move - as reported in todays Airline Economics Online, if I find out who the Japanese partner is I'll post again.

Stratos (an aircraft investment specialist and asset manager) has invested in Universal Hydrogen, the company aiming to decarbonise aviation through the adoption of hydrogen as a universal fuel. The investment is part of a funding round recently closed by Universal Hydrogen and was made via Stratos BeYoke Hydrogen fund I, along with a Japan-based financial partner.

Dr A, I guess it comes down to control and reputational risk. It will certainly be interesting to see which direction the new CEO looks to take the Company. In the meantime I will take a closer look at HUI, perhaps I am doing them a disservice!

It seems to me that PHE is becoming purely a techie company, happy to leave commercial exploitation to others. Whilst I have no issue with HUI’s involvement I don’t want to see them running rampant across the globe. Hopefully our new CEO is able to wrestle back control of the marketing initiative.
I remain a strong supporter of PHE and want to see as much value and kudos retained at that level.

I would like to think that PHE were part of the HUI / Linde negotiations, assuming that our DMG technology is part of the rollout strategy across Europe.
We should be centre stage!

Again from Airline Economics Online:

The aerospace industry in Hamburg is preparing for flying with hydrogen. Over the next two years and with funds provided by the city of Hamburg, Lufthansa Technik together with the German Aerospace Center (DLR), the Center for Applied Aeronautical Research (ZAL) and Hamburg Airport will design and test extensive maintenance and ground processes in handling hydrogen technology. For this purpose, an aircraft of the Airbus A320 family will be converted into a stationary laboratory at Lufthansa Technik's base in Hamburg.

A couple of updates from the world of aviation. This comes from an article in todays Airline Economics Online:

H2FLY, a German start-up developing hydrogen fuel cell systems for aircraft, and Deutsche Aircraft, a new German aircraft manufacturer putting climate change at the centerstage of their design philosophy, have signed a Memorandum of Understanding (MoU) to work together on the research and development of Hydrogen Fuel Cell technology for commercial regional aircraft.

The partnership will see the two companies convert the Dornier 328 aircraft for hydrogen flight, with the demonstrator aircraft expected to take to the skies in 2025. The program is expected to validate the potential for hydrogen to deliver climate neutral regional air travel with up to 40 seats, while demonstrating German leadership in this important field.

Many thanks for your comments Malachi, some interesting observations. I am sure that the engineers at Airbus will succeed.

The following is part of an article which appeared in Airline Economics Online:

Airbus has decided to concentrate its efforts for metallic hydrogen tanks in a complementary setup by creating Zero-Emission Development Centres (ZEDC) at its sites in Bremen (Germany) and in Nantes (France). The goal of the ZEDC is to achieve cost-competitive cryogenic tank manufacturing to support the successful future market launch of ZEROe and to accelerate the development of hydrogen-propulsion technologies. The design and integration of tank structures is crucial to the performance of a future hydrogen aircraft.

The technology developments will cover the full product and industrial capabilities from elementary parts, assembly, systems integration and the cryogenic testing of the final liquid hydrogen (LH2) tank system. Both ZEDCs will be fully operational by 2023 to build LH2 tanks with a first flight test scheduled for 2025.

British Airways has invested in ZeroAvia – an innovator in decarbonising commercial aviation – in an effort to accelerate the development of 50+ seater aircraft capable of running on zero emissions hydrogen-electric power.

British Airways and a group of investors including Horizons Ventures, Breakthrough Energy Ventures, Ecosystem Integrity Fund, Summa Equity, Shell Ventures, and SYSTEMIQ have invested a total of $24.3m, which will enable ZeroAvia to launch a new development programme to further demonstrate the credibility of its technology and accelerate the development of a larger hydrogen-electric engine, capable of flying further and using larger aircraft as soon as 2026.

ZeroAvia says it could achieve commercialisation for its hydrogen-electric power as early as 2024, with flights of up to 500-miles in up to 20-seater aircraft. With this new investment, ZeroAvia says that it expects to have 50+ seat commercial aircraft in operation in five years’ time and that it accelerates the company’s vision of powering a 100-seat single-aisle aircraft by 2030.

British Airways says that new investment reflects the importance the airline is placing on sustainability and supports its commitment to achieving net zero carbon emissions by 2050 through a series of short, medium and long-term initiatives. In addition to exploring and investing in the growth of these new longer-term technologies, the airline is also investing in the development of sustainable aviation fuels, flying more fuel-efficient aircraft and exploring the use of carbon capture technology.

Dr A,
I have been very interested to learn about your day job and the close relationship you have with PHE.
I am a long term shareholder having joined at below 1p. Things are really starting to move now and I was wondering if you see a move to the FTSE 250 anytime soon? The increased reporting and associated cost would be outweighed by an increase in the institutional investor base, I would have thought. Do you have an thoughts on the matter?

An interesting article in the Economist under the heading: Is The Time Now Ripe For Planes To Run On Hydrogen?
It goes on to say: "The allure of hydrogen is great: it packs three times as much energy per kilogram as kerosene, the current standard aviation fuel"
I have to say that this comment does seem to conflict with an earlier statement in the same magazine in which it states that aircraft will need larger fuel tanks to achieve similar range but the overall thrust dovetails with the joint RfP issued by Airbus and Air France recently (see my earlier post).

This is a cut and paste job on the opening paragraph from an article from Airline Economics Online:

Air France-KLM and Airbus are launching a worldwide call for expressions of interest for a hydrogen branch in Paris airports. Paris region, Groupe ADP, Air France-KLM and Airbus are launching a call for expressions of interest to explore the opportunities generated by hydrogen in Paris airports with the aim to decarbonize air transport activities. This worldwide call for expressions of interest complies with the French government’s energy transition strategy and supported by the European Commission, which strives for zero-emission aircrafts by 2035. Aware that the advent of hydrogen will revolutionize the way airport infrastructures are designed and operated, the partners want to anticipate and support developments that should help transform the Paris airports into true "hydrogen hubs".

It goes on....

Jean-Brice Dumont, Executive Vice President Engineering at Airbus, to add: "Airbus is determined to drive a bold vision for the future of sustainable aviation, and to lead the transition to zero-emission commercial flight. Hydrogen is the one of the most promising technologies that will help us meet that objective - but we won't be able to do it alone. This revolution will also require our regulatory and infrastructure ecosystems to change worldwide. Airports have a key role to play in enabling that transition, starting today, and we hope that this open innovation initiative will foster the development of creative projects and solutions."

I'm sure that there will be a significant role in this sector for PHE!

Lots of talk about cashflow this morning, and understandably so.
I’ve just done a quick calculation - the PV of £500k pa discounted at 7.5% over 20 years is approximately £5.1m per unit!

An exercise of options, which had already been announced, amounting to 0.15% of the issued share capital should have very little impact, if any.
Time to buy a few more shares and wait for the bounce!

Manage84 - And to put the tail on the donkey the Market Cap of ITM is approximately 11 times that of PHE to in order to achieve the same market value the share price of PHE needs to reach 90p (assuming neither company issues more shares). This should be eminently achievable given all the good news we believe is in the pipeline. Good luck to all longterm holders!

Hi KGR - I believe so, I have email details but the event doesn't seem to be on the Events Calendar - perhaps leave it for a couple of days and then have a look at the website.

For anyone interested The Royal Aeronautical Society at Cranfield is hosting an online lecture at 18:00 next Thursday 11 February entitled: Hydrogen in Aviation is Becoming a Reality. The speaker is Sergey Kiselev from ZeroAvia, a leading innovator in decarbonising commercial aviation.
Its free and open to all.