Fortescue (ASX:FMG) partners with HyTerra (ASX:HYT) pioneering white hydrogen exploration for a greener future

HyTerra (ASX:HYT), a pioneer in the exploration of white hydrogen, has announced a landmark partnership with Fortescue Future Industries Technologies, a subsidiary of Fortescue.

This strategic alliance marks a significant step forward in the global push for decarbonisation and positions HyTerra at the forefront of the emerging white hydrogen industry.

Fortescue’s Major Investment

Fortescue will acquire a 39.8% stake in HyTerra through a substantial investment of A$21.9 million, purchasing shares at A$0.034 each.

This cornerstone investment, pending shareholder approval, will significantly bolster HyTerra’s financial position, enabling an accelerated exploration campaign at the Nemaha Project in Kansas, USA.

The funds will be allocated towards expanding lease acreage, conducting comprehensive geophysical surveys, and drilling six new exploration wells, an increase from the initially planned two wells.

Expanding the Nemaha Project

HyTerra’s Nemaha Project, located in a geologically rich area of Kansas, is dedicated to exploring white hydrogen and helium resources. White hydrogen, a naturally occurring substance, is seen as a critical component in global decarbonisation efforts due to its low production costs and minimal carbon emissions.

The strategic alliance with Fortescue will not only enhance the scope of the Nemaha Project but also open doors to new global opportunities.

Benjamin Mee, HyTerra’s Executive Director, highlighted the significance of this investment: “An investment by Fortescue is a testimony to the hard work and delivery performance of the HyTerra team, the diverse geological plays available within our Nemaha Project leases, and our global growth opportunities in the pipeline. This investment would enable HyTerra to have a strong financial position going forward; but it’s the possibility to propel the global decarbonisation journey with such a visionary company that is truly exciting!”

Strategic Alliance for Global Growth

Beyond the immediate financial benefits, the partnership with Fortescue is set to create a Strategic Alliance Agreement aimed at leveraging the knowledge and data gained from the Nemaha Project to explore further global opportunities.

This alliance underscores Fortescue’s commitment to accelerating the commercial decarbonisation of industries worldwide, aligning perfectly with HyTerra’s mission to unlock the potential of white hydrogen as a low-carbon energy source.

Looking Ahead

Upon completion of the investment, Fortescue will become HyTerra’s largest shareholder and will gain the right to nominate a Director to the HyTerra Board.

This development is poised to strengthen HyTerra’s leadership team, providing valuable insights and guidance as the company navigates the complexities of white hydrogen exploration.

HyTerra’s innovative approach, combined with Fortescue’s strategic investment, forms a powerful alliance poised to reshape the future of energy, particularly through the exploration and development of white hydrogen, driving significant advancements toward a sustainable, low-carbon future.

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