Here's why the Global Energy (ASX:GEV) share price is leaping higher today

Hydrogen could prove a key clean energy source for the 21st century.

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The Global Energy Ventures Ltd (ASX: GEV) share price is leaping higher today, up 6% at time of writing, having earlier posted gains of more than 9%.

The company is focused on delivering compressed shipping solutions to produce, store and transport compressed hydrogen to regional markets surrounding Australia.

Below we take a look at the ASX energy share's announcement that appears to be driving ASX investor interest.

jump in asx share price represented by man leaping up from one wooden pillar to the next

Image source: Getty Images

What did Global Energy announce?

Global Energy's share price is surging after the company reported it has entered into a non-binding Memorandum of Understanding MOU) with Province Resources Ltd (ASX: PRL) and Total Eren on a new green hydrogen shipping study.

The partnership will help determine the feasibility, both commercial and technical, of exporting compressed hydrogen from the HyEnergy Project in Western Australia to select markets in Asia-Pacific, making use of Global Energy's compressed hydrogen marine supply chain.

Following completion of the study, Global Energy hopes the partners of the HyEnergy Project will have sufficient confidence to select its C-H2 marine transport supply chain for green hydrogen exports in the next phase of project engineering.

Commenting on the MOU, Global Energy's managing director Martin Carolan said:

The HyEnergy Project is an ideal green hydrogen export project for our compressed hydrogen shipping solution given its strategic location on the W.A. Gascoyne coastline, within a regional distance to multiple Asian markets with a future requirement for imported hydrogen.

Province Resources CEO, David Frances added:

The HyEnergy Project partners are keen to understand the benefits of compressed hydrogen in relation to other means of transporting our potential green hydrogen product to market. GEV are leaders in this technology and will bring that experience to the study.

The non-binding, non-exclusive MOU expires on 31 December 2022.

Global Energy share price snapshot

Over the past 12 months Global Energy's share price has gained 18%, trailing the 25% returns posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the Global Energy share price has struggled, down 11% in 2021.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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