FMG - Fortescue Ltd

[basilio]

This announcement put a rocket under Sparc earlier this month. It is clearly good news for FMG as well.

Good details on the value of this process in the announcement.



ASX ANNOUNCEMENT
7 January 2025
Sparc, Fortescue and University of Adelaide Commit to Stage 2 Pilot Plant
HIGHLIGHTS
• Sparc Technologies, Fortescue and University of Adelaide formally commit to proceed to Stage 2 of the Sparc Hydrogen joint venture

• Novel reactor technology employs a photocatalyst material and sunlight to produce green hydrogen directly from water without electrolysers

• Stage 2 is focused on construction and testing a first-of-its-kind pilot plant supporting ongoing reactor development and scale-up

• Front-end engineering and design (FEED) for the pilot plant is complete and construction is expected to commence early in 2025

Sparc Technologies Limited (ASX: SPN) (Sparc, Sparc Technologies or the Company) is pleased to announce that Sparc Technologies, Fortescue Limited (ASX:FMG) (Fortescue) and the University of Adelaide (UoA) will proceed to Stage 2 of the Sparc Hydrogen joint venture. The decision to proceed to Stage 2 reflects several key milestones achieved over recent months and is a strong endorsement of the potential of Sparc Hydrogen’s novel technology to unlock low-cost green hydrogen via photocatalytic water splitting (PWS).

Stage 2 activities are focused on pilot plant construction and reactor testing along with ongoing laboratory testing of PWS reactors under a range of conditions. Sparc Hydrogen believes that the pilot plant will represent a globally leading facility for R&D and commercialisation of PWS reinforcing Sparc Hydrogen’s first mover position in this emerging direct solar to hydrogen technology.

Sparc Hydrogen Proceeds to Stage 2 Pilot Plant (PDF 585.2 KB)

 

[TimeISmoney]

That's temping to pull your money out and run before things turn to poop.

 

[dyna]

But ....all those buyers , ......2,085 of 'em . Twice the pessimists !
They're must be pretty keen . They're not just lookers , like me .
Some would be .....( ahem ) , straight up gamblers . But some of them would have to be at least , a wee bit smart .

 

[basilio]

Found another story expanding on the Hydrogen Sparc technology project. Adds a bit more to the story.

IF. (big one) the pilot plant proves successful then there could well be a much larger move to a commercial size plant. The cost for FMG to date has been peanuts. ($ 1.5m)

Fortescue-backed concentrated solar hydrogen tech graduates to pilot phase​

..Sparc’s stock improvement likely comes from positive timeline announcements, including that the Stage 2 development is progressing with front-end engineering design (FEED) and site planning approvals are expected by the end of the month.

The big challenge right now is the efficiency of that photocatalyst material,” University of Adelaide’s Professor Gregory Metha said. He explained that the photocatalyst in the pilot plant need only be half as efficient as a competing photovoltaic system (20-25%) since the plant will not have the capex of the electrolyser, nor the cost of the electricity.

“We need to demonstrate what the plant is going to look like, so that’s where our work is focusing,” Metha said. “Our commercialisation manager here at the university likens it to us designing a car that is agnostic to the fuel.”

.... Equipment procurement is already underway and the pilot plant is anticipated to finish construction by mid-2025. The finished plant will test PWS via semi-continuous operation of an ‘on-sun’ plant using concentrated solar mirrors, advancing the reactor technology readiness level (TRL) from 5 to at least 6.

Fortescue-backed concentrated solar hydrogen tech graduates to pilot phase

Resources giant Fortescue has committed to the next phase of advancing a novel green hydrogen technology that uses only sunlight, water and a photocatalyst.

reneweconomy.com.au

 

[farmerge]

Found another story expanding on the Hydrogen Sparc technology project. Adds a bit more to the story.

IF. (big one) the pilot plant proves successful then there could well be a much larger move to a commercial size plant. The cost for FMG to date has been peanuts. ($ 1.5m)

Fortescue-backed concentrated solar hydrogen tech graduates to pilot phase​

..Sparc’s stock improvement likely comes from positive timeline announcements, including that the Stage 2 development is progressing with front-end engineering design (FEED) and site planning approvals are expected by the end of the month.

The big challenge right now is the efficiency of that photocatalyst material,” University of Adelaide’s Professor Gregory Metha said. He explained that the photocatalyst in the pilot plant need only be half as efficient as a competing photovoltaic system (20-25%) since the plant will not have the capex of the electrolyser, nor the cost of the electricity.

“We need to demonstrate what the plant is going to look like, so that’s where our work is focusing,” Metha said. “Our commercialisation manager here at the university likens it to us designing a car that is agnostic to the fuel.”

.... Equipment procurement is already underway and the pilot plant is anticipated to finish construction by mid-2025. The finished plant will test PWS via semi-continuous operation of an ‘on-sun’ plant using concentrated solar mirrors, advancing the reactor technology readiness level (TRL) from 5 to at least 6.

Fortescue-backed concentrated solar hydrogen tech graduates to pilot phase

Resources giant Fortescue has committed to the next phase of advancing a novel green hydrogen technology that uses only sunlight, water and a photocatalyst.

reneweconomy.com.au

@basilio Sounds well and good but the proof is still to come.

 

[basilio]

@basilio Sounds well and good but the proof is still to come.

Indeed it is. I was highlighting a few salient points

1) This pilot plant should be up and running within 6 months

2) It appears that the processing mechanism for the operation is relatively straightforward. The critical element is the efficiency of the catalyst.

3) The University seems to be setting a low bar of how efficient the catalyst needs to be to make the process cost effective. Two implications here
- a) At 10-15% efficiency it is equivalent to current PV systems
- b) Therefore if they can extract/develop significantly higher efficiencies this process will absolutely kill the alternatives

4) From the sound of the operations if they did get 15-20% efficiency initially they could safely start up a commercial plant and work on replacing the catalyst as their research improves.

But yes this is still a work in progress.

 

[finicky]

Commentary today from Market Matters on the Dec Qtrly

Not Held

Fortescue Metals (FMG) $18.62

FMG –2.15%: The iron ore producer came out with a solid quarterly on a tough day for commodity stocks.
Key highlights:

• Iron ore shipments 49.4 million tons, +3.6% q/q
• Maintained full-year guidance of 190-200 million tons, costs and capex remained unchanged.
• Cash balance $3.4 billion vs. $3.4 billion q/q
• Net debt $2.0 billion, -4.8% q/q

FMG has stuck with its guns as essentially a single-commodity producer, the exceptions being its critical minerals exploration in Argentina, Peru and Kazakhstan, after it canned its hydrogen-related aspirations last year. We saw that move as a positive as it alleviated some of the unknowns, particularly costs, from the business. Nonetheless, operational execution remains key moving forward as we start to see pressure on Chinese steel demand and volatility in the iron ore price.

• We like the company’s dirt-cheap cost of production (C1 costs at $18.24/mt) and current gross dividend yield of ~15% (i.e. incl franking) – we continue to hold it in the Active Income portfolio.

MM remains long and bullish FMG

 

[joeno]

Imagine new players trying to get into mining with price of iron lower than it is now. It would be impossible for them to turn a profit. They go bust and the big low cost miners consolidate gaining market share, causing prices to go up again.

 

[TimeISmoney]

​

Fortescue offers $254m for nearby Pilbara iron ore deposit​

Billionaire Andrew Forrest has launched an off-market bid to acquire Red Hawk, the owner of a key iron ore deposit near Fortescue’s existing Pilbara mines, as part of a strategy to secure longer-term growth on home soil.

The board of Red Hawk has agreed to sell its Blacksmith iron ore deposit, located 30 kilometres west of Fortescue’s Solomon operations in the Pilbara, in a deal valued at up to $254 million. Fortescue requires the support of the target’s shareholders to secure the deal.

 

[basilio]

Twiggy is still fiercely promoting the need and capability of industry coming off fossil fuels by 2040. He also highlights FMG committment to do so by 2030.
There is also a hint that new more cost efficient Hydrogen production technology is close by. Probably referring to Sparc project

Forrest says no reason world can’t stop burning fossil fuels by 2040, hints at hydrogen breakthrough​

Andrew Forrest: Bloomberg TC.

Giles Parkinson
Jan 28, 2025


Andrew Forrest People Policy & Planning

Iron ore billionaire and green energy evangelist Andrew Forrest has made another major intervention into the global energy debate, insisting that there is no reason that the world cannot stop burning fossil fuels by 2040, even if detractors think the idea is “woke.”
Forrest has already set a target of “real zero” emissions at his company’s iron ore operations for 2030, by which time he says it will not be burning any fossil fuels for mining, processing or land transport.

Forrest is a major critic of “net zero” strategies allow carbon offsets or carbon capture and storage. Real zero, he says, involves the elimination of fossil fuels, and he wants the world to follow – and achieve it a decade earlier than current “net zero” targets.

“If Fortescue can achieve real zero by 2030, there is no reason the rest of the world can’t follow by 2040,” Dr Forrest said in a statement marking his company endorsement of the so-called “Fossil Fuel Treaty” on the sidelines of the Davos World Economic Forum late last week.
“The economics make sense and the technological solutions exist to phase out fossil fuels,” Forrest said.

....“There is a new form of hydrogen, which will come onto the marketplace, which will be a lot cheaper,” he told Bloomberg. “We’re not yet in a position where I want to talk about it publicly.”

Forrest says no reason world can’t stop burning fossil fuels by 2040, hints at hydrogen breakthrough

Forrest says if Fortescue can stop burning fossil fuels by 2030, the rest of the world should follow by 2040, even if detractors call it woke. And he hints at hydrogen breakthrough.

reneweconomy.com.au

 

[divs4ever]

I haven't looked at FMG trading in detail before, but I'm not sure that I've ever seen the likes of early trading such as this.
Probably not uncommon though for the bigger stocks.
Have to decipher some of the codes yet..
It's all on ASX though, not sure about CHIx.
Found it interesting that over $3.1 million has traded so early by big wigs and the prices paid !

View attachment 190853

Do THEY actually pay that or are they a deemed price for taxation and accounting purposes

One might wonder about paying a dollar or two over the current market price

Sure excersizing options lower would be logical

 

[basilio]

A note from FMG today confirming their takeover of Red Hawk Mining. I imagine it must represent a good deal for them in terms of easily accessible quality ore reserves.

What was interesting was seeing the list of the new shareholders

Fortescue Ltd (FMG), FMG Pilbara Pty Ltd (FMG Pilbara) and each of the entities referred to in Annexure A (FMG Group Entities) and Tattarang Pty Ltd ACN 055 961 361 atf the Peepingee Trust (Tattarang)
Tattarang is Twiggys personal company.
The list of Fortescue related entities in Annexure A is

164 companies
All over the world .

Change in substantial holding for RHK (PDF 197.8 KB)

 

[DrBourse]

FYI.

 

[TimeISmoney]

Frig! 50 cent div and the SP drops by more than $1.

 

[dyna]

S.P. down 6 % to $ 18.24 on the heaviest daily volume for about 5 months : 21 million FMG traded .

Market reacting to all the company's announcements , today .