HyTerra (ASX: HYT | OTCQB: HYLTF | Frankfurt: 8TP0) advances US geologic hydrogen pathway with end to end demonstration

HyTerra Limited Chief Executive Officer Riley Kemp spoke with MarketOpen following the execution of an exclusive Collaboration Agreement with Prometheus Hydrogen to undertake an end to end geologic hydrogen demonstration in the United States.

The Demonstration, targeted for completion before 1 December 2026, will see HyTerra supply raw gas containing geologic hydrogen from a controlled US well site, with Prometheus Hydrogen responsible for purification, storage, transport and delivery to a mutually agreed end user.

Structured as a defined proof of concept under an exclusive framework, the agreement formalises the pathway from production through to delivery.

In the following Q&A it is discussed what this agreement means for the company’s commercial progression, how capital exposure is being sequenced and what must be delivered before broader supply discussions commence.

What materially changes for HyTerra’s commercial pathway as a result of this exclusive Demonstration?

There are two components to establishing a commercial pathway for HyTerra: 1) the ability to extract commercial volumes of geologic hydrogen at low cost; and 2) the ability to deliver that hydrogen to a large offtake market.

The Demonstration derisks the second (market) component.  Rather than commercial pathways requiring immediate conversion of hydrogen to derivative products like ammonia or Sustainable Aviation Fuel, a successful Demonstration will show that the hydrogen itself can be transported efficiently to offtakers. This is expected unlock a larger market for geologic hydrogen without introducing prohibitive midstream infrastructure costs.

Once the market component is proven the commercial pathway will solely rely on successful exploration, involving continued drilling, testing and technology trials as HyTerra is planning.

How does the 9 kilogram proof of concept structure validate pricing and execution without taking on offtake risk?

9 kilograms is a nominal volume of hydrogen for the purposes of demonstrating the end-to-end delivery only.  The pricing is calculated by reference to the prevailing grey hydrogen price at the time which reflects HyTerra’s commercial goal: compete with grey hydrogen on price and gain access to a large existing hydrogen market.  There is no commitment by either party to long term volume or fixed pricing arrangements.

That structure is deliberate, as it allows us to test commercial mechanics and delivery performance without locking in terms ahead of validation, with the objective being to confirm that hydrogen can be produced and delivered under agreed parameters in a practical setting rather than to generate revenue at scale. The pricing mechanism reflects the intention of both parties to be the lowest cost supply of hydrogen to offtakers.

There are no binding long term offtake arrangements at this stage, which preserves flexibility and ensures that any broader supply discussions occur only after performance is demonstrated, grounding future commercial negotiations in executed outcomes rather than assumptions.

What specific milestones must be achieved before 1 December 2026 to unlock broader supply discussions?

The milestone is successful completion of the Demonstration within the agreed timeframe, which requires us to supply raw gas from a controlled well site and for Prometheus Hydrogen to purify, store, transport and deliver that hydrogen to a mutually agreed end user under the agreed structure.

The Demonstration does not in itself establish scale, but it is designed to confirm that the pathway functions end-to-end. Once proven, we will look at opportunities to work with Prometheus Hydrogen at a broader scale within the US and internationally. There is a strong alignment between HyTerra and Prometheus Hydrogen and a shared goal to work together to unlock the geologic hydrogen industry.

Execution phase sets foundation for structured commercial discussions

The next phase for HyTerra is execution led. Delivery of the Demonstration within the targeted timeframe establishes a validated pathway from production to end user and a catalyst for a broader commercial relationship.

While the agreement does not yet establish binding long term supply, it defines a disciplined progression in which proof of delivery precedes scale, positioning the company to engage from a foundation of demonstrated performance rather than projection.