Australia can play a "pivotal role" in the hydrogen export market, a handbook released by Australia and New Zealand Banking Group Ltd (ASX: ANZ) reveals. In what could spell good news for ASX hydrogen shares, the report says, "Australia is remarkably well-positioned to benefit from the growth of hydrogen industries and markets".

Last year proved to be a good one for ASX hydrogen shares, with five companies gaining more than 100% in 2021.

So what's the outlook for hydrogen? Let's take a look.

Clean energy opportunity

Hydrogen as a fuel source will be "key" to reducing carbon emissions in the economy, a foreword to the ANZ Hydrogen Handbook stated.

In comments signed off by ANZ chief executive Shayne Elliot, group executive Mark Whelan and managing director Christina Tonkin, the report said:

The rapid emergence of hydrogen as a low-emissions fuel source offers another pathway to achieving net-zero carbon. With its distinctive properties as an energy carrier, we believe hydrogen will be key.

With abundant wind and solar energy resources, Australia is well positioned to play a pivotal role in developing a hydrogen export market to key customers in Asia, in particular those in Japan, Singapore and South Korea. Our customers are clearly pursuing the commercial production of hydrogen to varying degree.

ASX hydrogen shares

Earlier this week, Goldman Sachs said the hydrogen market could be worth more than US$1 trillion ($1.4 trillion) by 2050 — and predicted Australia to play a major role in it.

One notable ASX hydrogen share is Fortescue Metals Group Limited (ASX: FMG) and its green energy subsidiary, Fortescue Future Industries (FFI).

The company last year announced plans to build a hydrogen-equipment manufacturing facility in Queensland. The Global Green Energy Manufacturing Centre, in Gladstone, will produce up to 2 gigawatts of electrolysers each year. Electrolysers split hydrogen from water and, if run on renewable electricity, are entirely carbon neutral.

Fortescue chair Andrew Forrest this week took aim at the Morrison government's assertion that coal and gas-generated hydrogen can be billed as 'clean'.

The Fortescue Metals Group share price closed yesterday at $22.28, up 3.97%. It is now up 16% this year to date.

With investors keen to jump on the green energy bandwagon, 2021 saw huge increases for some ASX hydrogen shares. The biggest gainer was Province Resources Ltd (ASX: PRL), which saw its share price skyrocket 1,300% last year.

Other ASX hydrogen shares that recorded big gains in 2021 include Sparc Technologies Ltd (ASX: SPN), Pure Hydrogen Corporation CDI (ASX: PH2), Environmental Clean Technologies Ltd (ASX: ECT), and QEM Ltd (ASX: QEM).

Three key openings

There are three major openings for Australia when it comes to clean hydrogen, ANZ executive director John Hirjee suggests.

The first is energy export. Hirjee commented Japan and South Korea need cleaner energy to meet their reduction targets. He believes clean hydrogen is ideal.

In a research paper forming part of the handbook titled 'Hydrogen — is it a lot of hot air?', Hirjee said:

This is a significant opportunity for Australia, given the potential for ample renewable energy and convertible fossil fuel reserves. However, the export industry is likely to take some years to develop to full-scale commercialisation.

The domestic economy is also a major opportunity for Australia, given hydrogen can power our cars, Hirjee stated. Finally, he believes green hydrogen production can help build energy system resilience.

While firmed renewable energy is the least capital intensive form of producing clean hydrogen, green H2 production can respond rapidly to variations in electricity production and contribute to frequency control in the electricity grid.

However, the commercialisation of hydrogen is not without its challenges, the report says. Electrolysis, the method used to produce hydrogen, is expensive. Once produced, hydrogen is difficult and costly to store and transport, due to the gas being highly flammable and volatile.

So what's the outlook for ASX hydrogen shares?

By 2050, hydrogen could power 400 million cars, 20 million trucks, and 5 million buses, Hydrogen Council forecasts cited in the report predicted.

Hydrogen is experiencing "unprecedented momentum" and is vital for a clean and secure energy future, the report noted.

ANZ believes Australia is "uniquely positioned" to become a leader in clean hydrogen. In a research paper forming part of the report, author Jessica Paterson summarised:

The proximity of Australia to the Asia Pacific region provides a key advantage for supplying Asian markets with H2, as other potential competitors could be disadvantaged by additional transport costs.

Furthermore, Australia can capitalise on its proven track record in energy exports such as LNG, especially to comparatively resource-constrained countries.

The post Are ASX hydrogen shares in a 'hot air' bubble? appeared first on The Motley Fool Australia.

ASX investors were looking to cash in on a growing push to go green in 2021. One grouping of investments on the receiving end of this trend has been ASX hydrogen shares.

The promise of clean and green energy extracted from water gained interest last year. From this, a number of ASX-listed companies dabbling in the space experienced extraordinary returns.

Let's hone in on the 5 hydrogen shares that performed the best in 2021.

5 powerhouse ASX-listed hydrogen shares of 2021

The topic of hydrogen energy dominated the headlines last year. Meanwhile, the following 5 companies decimated market returns. For context, the S&P/ASX 200 Index (ASX: XJO) produced a 13% return before dividends. Whereas, all of these ASX shares gained more than 100% during the 12-month period.

QEM Ltd (ASX: QEM)

Landing on our roundup of best performing ASX hydrogen shares of 2021 is exploration and project development company, QEM Ltd. Shares in the small-cap flew higher back in March of last year after it announced plans to pursue a green hydrogen strategy at its Julia Creek Project.

Since then, the company has undertaken studies to assess the use of solar and/or wind farms to produce green hydrogen. In July, QEM announced it had concluded that the project could accommodate a wind farm capable of outputting 126 megawatts of electricity.

With its plans progressing throughout the year, the QEM share price gained 125% in 2021.

Environmental Clean Technologies Ltd (ASX: ECT)

The next ASX hydrogen share making the top 5 is Environmental Clean Technologies Ltd. The way this company is dabbling in hydrogen energy is through its two technologies; HydroMOR and COHgen. Both of these technologies are centred around the use of lignite — also known as brown coal.

In November 2021, the company announced it had purchased the site for its proposed hydrogen refinery project. According to the release, the property spans 4.2 hectares in the Latrobe Valley next to the Yallourn mine and power station.

Shares in Environmental Clean Technologies gained 300% in 2021, making this company a four-bagger in one year.

Sparc Technologies Ltd (ASX: SPN)

Taking hydrogen energy to the next level, Sparc Technologies introduced the concept of 'ultra-green' hydrogen in 2021. In October, the company announced a joint venture with the University of Adelaide to develop this technology.

What sets Sparc's new concept apart from the rest is its plan to utilise direct solar radiation to produce hydrogen from water. This would remove the need for complex and expensive electrolysers, making the process of creating green hydrogen more economically viable.

This ASX hydrogen share skyrocketed an astonishing 423% during 2021, making it the third best-performing out of the bunch.

Pure Hydrogen Corporation CDI (ASX: PH2)

Despite plateauing between May and September, Pure Hydrogen Corporation was one of the best performing ASX hydrogen shares in 2021. A raft of announcements relating to planned hydrogen projects, funding, and technology saw this company rise to prominence last year.

In November, Pure Hydrogen announced it expected to have a waste hydrogen plant operational by the end of this year. This would be the first of its three planned facilities across Brisbane, Melbourne, and Sydney. Additionally, the plants are expected to supply at least 1,000 kilos of hydrogen per day for six years.

At the end of a record year for the company, shares in Pure Hydrogen notched up a 511% gain.

Province Resources Ltd (ASX: PRL)

Finally, with a mindboggling return of 1300% last year, the best performing ASX hydrogen share of 2021 was Province Resources Ltd.

The majority of this face-melting share price appreciation was accrued in the first few months of the year. Around this time Province Resources acquired Ozexco Pty Ltd, giving the company wind and solar resources, unlocking the potential for renewable green hydrogen.

Since then, Province has gone on to raise further funds to progress its planned HyEnergy Project.

The post Here are the 5 best performing ASX hydrogen shares of 2021 appeared first on The Motley Fool Australia.

The QEM Ltd (ASX: QEM) share price is soaring today after the company updated the market on its Julia Creek vanadium and oil shale project's potential green hydrogen hub.

At the time of writing, the QEM share price is up 19.35%, with shares in the company trading for 18.5 cents apiece.

However, earlier today, shares in QEM were swapping hands for 25 cents – a whopping 56% higher than their previous close.

3.3 million shares in the company have swapped hands so far today. Let's take a look at the news driving the excitement for QEM shares.

What's driving the QEM share price today?

Today's news from QEM regards its plans to create a green hydrogen hub in outback Queensland.

Green hydrogen is hydrogen created using renewable energy.

The company has received the first stage of its pre-feasibility study into the potential to generate electricity from solar and wind to power the project.

So far, it has found it can house a wind farm capable of producing 126 megawatts of electricity using 21 wind turbine generators.

Further studies will assess the site's wind speeds and other factors pertaining to the windfarm's viability.

The second stage of the QEM's pre-feasibility study is underway. It will investigate the additional possibility of creating a solar farm.

Additionally, a $1.5 billion high voltage transmission line named Copperstring 2.0 is being built between Townsville and Mount Isa. It will run within 10 kilometres of Julia Creek and will allow QEM's project access to Queensland's electricity grid.

A green future

QEM also announced the findings of a report by Siecap, a project management consultant engaged with QEM's project.

The report found global demand for green hydrogen will increase by 750% by 2050.

According to Siecap, by 2030 Australia's green hydrogen export market will be worth $2.6 billion, driven by demand from Asia. The continent will account for 70% of global demand.

Siecap also reported the global market for green hydrogen will be worth US$12 trillion by 2050.

Commentary from management

QEM's managing director Gavin Loyden commented on today's news from the company, saying:

The results of the wind farm stage of the study brings QEM another step closer to becoming a pioneering Queensland producer of green hydrogen…

The hydrogen market report independently produced by Siecap further reinforces that our path towards green hydrogen, commencing with investment in on-site renewable energy generation, is the optimal one to deliver long-term value for QEM.

QEM share price snapshot

2021 has been a good year for the QEM share price, which has gained 111% year to date.

It is also 90% higher than it was this time last year.

The company has a market capitalisation of around $15.5 million, with approximately 100 million shares outstanding.

The post The QEM (ASX:QEM) share price is soaring 19% today appeared first on The Motley Fool Australia.

The QEM Ltd (ASX: QEM) share price powered up today on news of a new project management specialist for the company's green hydrogen development.

At the time of writing, the QEM share price has gained a huge 37%. Shares in the exploration and development company are currently swapping hands for 24 cents. 

Let's take a closer look at the announcement made by the company this morning.

New project management 

Today's gains for the QEM share price come after the company shared that it has signed an execution strategy agreement with the project management consultant Siecap.

The agreement will see the Brisbane-based consultancy company assume a project management role at QEM.

It will manage execution strategies for mining, extracting, processing, and the Julia Creek project, where QEM will be exporting vanadium pentoxide and transport fuels as well as green hydrogen. 

Siecap will also be responsible for grants coordination. Previously, QEM has stated its Julia Creek project could be eligible for a number of grants. These include the $2.47 billion Northern Australian Infrastructure Facility and the $24 million Queensland Hydrogen Industry Strategy funding commitment.

In its release, the company stated that Siecap could be working to support the progressing of Julia Creek's pre-feasibility study in the future.

Commentary from management

QEM's managing director Gavin Loyden commented on the agreement, stating it will strengthen the company's future plans.

With the continued progression of our Julia Creek vanadium and oil shale project and green hydrogen strategy, this Agreement will streamline our broader business strategy to drive these two intertwined developments forward as efficiently as possible,

Siecap has a deep knowledge of the sector and policy environment QEM operates in, making them the optimal choice to assist us in successfully executing this.

QEM share price snapshot

The QEM share price rose dramatically when the company announced its green hydrogen strategy in March, and it's been performing well since.

Currently, the QEM share price is up 161% year to date. It's also up by 235% over the last 12 months.

The company has a market capitalisation of around $23 million, with approximately 100 million shares outstanding.

The post Why the QEM (ASX:QEM) share price catapulted 37% today appeared first on The Motley Fool Australia.

The QEM Ltd (ASX: QEM) share price is in the green during early-afternoon trade following a collaboration with DNV Australia. At the time of writing, the liquid fuels producer's shares are swapping hands for 19 cents.

Independent expert in risk management and assurance, DNV operates in more than 100 countries. The company specialises in advisory, monitoring, verification, and certification services across the entire energy value chain.

What did QEM announce?

Investors appear excited about the company's prospects, pushing the QEM share price higher.

In its announcement, QEM advised that it has engaged DNV to undertake a pre-feasibility study into power generation from solar and wind farms. This forms part of the company's broader assessment in progressing studies into producing green hydrogen at its Julia Creek project.

The pre-feasibility study will cover solar farm resource mapping and modelling, as well as a preliminary solar photovoltaic (solar PV) system design. Furthermore, DNV will develop a preliminary wind turbine layout to gain a better understanding of wind farm resource mapping and modelling.

The study will look at how well both solar and wind farms work together in creating potential renewable energy sources. This is expected to feed into the company's electrolyser to produce hydrogen.

The pre-feasibility study is due to be finalised before the end of the second quarter. DNV will then move on to undertaking more definitive wind resource measurements and solar resource monitoring during the third quarter.

Management commentary

QEM managing director, Gavin Loyden touched on the company's green hydrogen strategy, saying:

Engaging DNV demonstrates that we are swiftly laying the foundations for green hydrogen opportunities at Julia Creek.

The Julia Creek site receives significant sun exposure and DNV has already noted that the site is substantially flat, which bodes well for installation of wind power generation.

Importantly, advancing our green hydrogen strategy will enhance the development of our flagship Julia Creek vanadium and oil shale project.

About the share price

The QEM share price has accelerated over 160% in the last 12 months, with most of the gains coming from year-to-date. The company's shares reached an all-time high of 34 cents late March before profit-taking took place.

The post Here's why the QEM (ASX:QEM) share price is climbing today appeared first on The Motley Fool Australia.

The QEM Ltd (ASX: QEM) share price is surging again today. At the time of writing, the vanadium and energy company's shares are trading for 27 cents, up 15.22% from yesterday's closing price.

Let's take a look at what's driving the QEM share price higher.

Floating away on hydrogen  

While there is no news from QEM so far this week, today's gains may be residual from the company's big news last Monday.

On 15 March, the company announced it will be pursuing a hydrogen initiative in outback Queensland. Both the announcement and an accompanying investor presentation released two days later sent the QEM share price soaring. Last Monday, the QEM share price rose by an astonishing 101%. Then, on Wednesday, it rose by another 6.4%.

Yesterday, a day of no news, still saw the company's share price rocketing 53% and it seems to be following a similar trajectory today.

3 key drivers of the QEM share price

Over the last eight days, the company has shared three key happenings that have boosted the QEM share price. Firstly, as mentioned, the company announced its intention to produce 'green' hydrogen by using solar power to separate hydrogen from water – a process known as electrolysis. It is exploring opportunities to do so at its Julia Creek site.

Secondly, it shared it is seeking a number of government loans and grants with a combined value of more than $2.88 billion. The company believes it's eligible for funding from various federal and Queensland government initiatives, including the Northern Australian Infrastructure Facility and the Strategic Blueprint for the North West Minerals Provence.

Finally, the company reiterated the importance of its Julia Creek site as an oil shale reserve and producer of vanadium. QEM hopes to make its oil production more sustainable by using its hydrogen resource to hydrogenate oil produced at Julia Creek.

Management comments

QEM managing director Gavin Loyden told The Motley Fool the company is very happy to see the market's response to its strategy. He said:

It's very encouraging to see that people understand what it is we are trying to achieve with the Julia Creek Project and how this aligns with both Federal and State Government priorities. The initial reaction has been to the hydrogen phase of our story, which interestingly is not something new. This is an integral part of the process design and has been for quite some time.

The difference now is that the project is gaining momentum at the same time as public awareness and government policy is there to provide the support and exposure that junior companies such as QEM need at these important inflection points of development.

We have always placed a keen focus on the environment with this project and our aim is to use the most advanced technologies at our disposal, including renewables and green hydrogen to ensure we have the best shot at delivering a world's best practice project, which seeks to produce products that will be essential to rebuilding the economy and driving progress in the energy space, such as vanadium for energy storage and sustainable fuels for transport.

QEM share price snapshot

Today's gains included, the QEM share price has rallied by more than 195% since the start of the month and around 188% year to date. It is also up by 278% over the last 12 months.

QEM has a market capitalisation of around $23 million, with approximately 100 million shares outstanding.

The post The QEM (ASX:QEM) share price is up 15% today, 55% in a week appeared first on The Motley Fool Australia.

QEM Ltd (ASX: QEM) shares are on fire again today after the vanadium and energy company released an investor presentation to the market this morning. At the time of writing, the QEM share price has surged 16.3% higher to 18 cents.

In comparison, the All Ordinaries Index (ASX: XAO) is currently down by 0.76%.

Let's take a closer look at what might be affecting the QEM share price today.

QEM investor presentation

The company followed its market update of two days ago, which saw the QEM share price rocket by 119% in one day, with an investor presentation today.

In the presentation, the company provided investors with information regarding three key revenue sources. They are:

1. The Julia Creek vanadium and oil shale project
2. The hydrogen production strategy
3. Government funding

Julia Creek project

Located in the North West Minerals Province (NWMP) of Central Queensland, the Julia Creek site is both a vanadium and oil shale mine.

According to The Royal Society of Chemistry, vanadium is a silvery metal mainly used in steel production. It reinforces steel for strength, weather resistance, and increased fuel efficiency. The twenty-third element is also used in ceramic and dye production, and in renewable energy storage.

Elements essential to renewable energy technology, such as lithium and rhodium, have seen their prices boom in recent weeks.

The Australian Government considers vanadium to be a 'critical mineral'. According to Geoscience Australia, a critical mineral is "…vital for the economic well-being of the world's major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors."

The Julia Creek site is also home to a large oil shale reserve. Oil shale is sedimentary rock which contains organic matter. It has not yet undergone the process of converting into crude oil in underground wells. The company sees the emerging oil shale industry as an untapped market within Australia.

Hydrogen production strategy

Using solar power, QEM is exploring opportunities to produce 'green' hydrogen. The company separates hydrogen from water using a process known as electrolysis.

The hydrogen will be used to power the Julia Creek site, and any surplus electricity would be sold to the Queensland grid. As well, QEM will use the universe's most abundant resource to hydrogenate raw oil, thus making it more sustainable.

Long term, the company wants to turn the Julia Creek site into a hydrogen hub for the entire NWMP.

Government funding

As a producer of critical materials, QEM advised it is targeting a range of government loans and grants through both state and federal funding agencies. One such agency is the Northern Australia Infrastructure Facility (NAIF).

NAIF is a commonwealth agency designated with boosting economic development in northern Australia through strategic private sector investment. In the last financial year, NAIF made $1.4 billion worth of investments.

Another government agency QEM believes it may be able to access is the Australian Renewable Energy Agency (ARENA).

ARENA supports research and development in renewable energy technology through strategic investments and sharing research with the private sector. Hydrogen production, storage, and use are all within ARENA's scope.

At the state level, the Queensland Government has several initiatives to boost mineral extraction in the state. The most relevant ones include the NWMP Strategic Blueprint worth $39 million, the Hydrogen Industry Strategy worth $19 million, and the $100 million Resources Community Infrastructure Fund.

QEM share price snapshot

One year ago, the QEM share price was sitting at 7 cents. Since then, it has gained more than 150%. Almost all of these gains occurred over the last couple of days. Only last Friday, shares in the company were trading at 8.2 cents.

However, the QEM share price is still trading half a cent lower than its initial public offering (IPO) price of 18.5 cents.

QEM has a market capitalisation of around $15.5 million.

The post Why the QEM (ASX:QEM) share price is shooting 16% higher today appeared first on The Motley Fool Australia.

The QEM Ltd (ASX: QEM) share price shot up by a mammoth 95% to 15 cents on opening today after the company announced its plans to pursue hydrogen energy.

The exploration and development company advised today it has begun studies into 'green' hydrogen opportunities at its Julia Creek Project in North Queensland.

The QEM share price is up 119%, trading at 18 cents at the time of writing after hitting an intraday high of 19.5 cents.

What did QEM announce?

QEM announced it was looking into the financial and regulatory requirements of producing 'green' hydrogen at Julia Creek using a solar-powered electrolyser.

Hydrogen is considered green if renewable energy is used to generate the electricity needed for its production.

The company believes that the hydrogen from its Julia Creek project could be used for the hydrogenation of its raw oil, creating more sustainable transport fuels. Further, the project's location is ideal for the company to provide hydrogen power to other resource projects in Queensland's north-west.

QEM also noted trucks and trains travelling through Queensland often needed to refuel in Julia Creek. As hydrogen-powered vehicle technology becomes more common, the project may serve as a vital component of Queensland's transport industry.

Currently, the Julia Creek Project is one of the world's largest single oil shale and vanadium deposits. 

QEM is set to begin an approval process with the Queensland Government to provide water to the potential development.

Commentary from management

QEM managing director Gavin Loyden said the project's location and resource profile was "optimal" for producing hydrogen on-site.

Crucially, the hydrogen strategy aligns with the broader strategic direction of Julia Creek, as QEM looks to target both the liquid fuels and renewable energy sectors.

We remain committed to continuing the development of Julia Creek to unlock the substantial latent value the vanadium and oil shale project possesses. 

QEM share price snapshot

The QEM share price opened at 15 cents this morning, up 95% from Friday's close of 0.08 cents.

QEM has a market capitalisation of approximately $8 million with 100 million shares outstanding.

The post The QEM (ASX:QEM) share price has rocketed 119% today. Here's why appeared first on The Motley Fool Australia.