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JEV: Strategic Partnership to Accelerate Boiler Sales

What you need to know:
• Jericho announced a strategic industrial partnership with Sofinter Group and EXOGEN Hydrogen to manufacture, implement, and service a new hydrogen steam plant (the HSP3000).
• The HSP3000 will be a scalable and modular solution featuring HT’s DCC boiler technology which will be produced by Sofinter and marketed by Exogen. We expect this to accelerate sales commitments through H2/23.

This morning, Jericho Energy Ventures Inc. (JEV:TSXV, OTC:JROOF) announced a strategic industrial partnership with EXOGEN Hydrogen Solutions and Sofinter Group to manufacture, implement, and service a new hydrogen steam plant. We view the release as a solid advancement to HT’s sales strategy and expect this to accelerate sales commitments through H2/23. We are maintaining our BUY rating and C$0.40/share target price on Jericho Energy Ventures.

The Hydrogen Steam Plant is known as the HSP3000, which will be a scalable and modular turnkey solution. The HSP3000 is being produced and assembled by Sofinter Group and features Hydrogen Technologies’ (100% owned by JEV) patented DCC boiler technology. Exogen plans to offer the HSP3000 as an integrated product and engineering solution.

The product will be a breakthrough, zero-emissions, hydrogen-powered steam solution for industrial steam and thermal applications, while coming pre-assembled in container-sized units. The DCC technology allows for no smokestack or hazardous emissions management systems. JEV estimates that each HSP3000 installation will eliminate the CO2 equivalent of ~5,000 cars. The HSP3000 will exhaust clean water, allowing for circular use with electrolyzer systems.

The HSP3000 can also eliminate all NOx, CO2, and other GHG emissions from industrial steam and district heating applications, potentially allowing clients to harvest carbon credits. We expect the product launch to expedite sales commitments across various industries including, Pulp & Paper, Food & Beverages, Pharmaceuticals, Industrial Chemicals, and O&G. For a deeper drive on Hydrogen Technologies and the DCC boiler technology, please refer to our initiation report here.

Sofinter Group is a leader in the international energy markets, providing plants and parts for industrial steam production, power generation, and waste & water treatment. Under its Macchi brand, Sofinter is a worldwide leader in the design and construction of industrial boilers and heat recovery systems for cogeneration cycles in the refining, oil & gas, and petrochemical sectors.

Exogen offers end-to-end hydrogen energy solutions to help companies facilitate their roadmap to net-zero targets. JEV and Exogen have been working together since October 2022 when the firms executed an MOU to bring the DCC to Europe.