Underground salt domes are the hottest Green Commodity You’ve Never Heard Of.
But governments in Europe and North America are spending a lot of money developing these huge underground caverns to hold energy-dense hydrogen in their zeal to go net neutral or zero carbon.
This is actually one of the greenest ideas that makes a lot of economic sense. Hydrogen has a relatively high “energy density”; One cubic meter of hydrogen can power an average American home for two weeks.
I was shocked to learn how far the whole world is already on the Green Hydrogen Road.
This time over 18 different federal governments…… which represent 70% of the world’s GDP, have already fully developed the National Green Hydrogen Strategy. (1) These are evolving strategies that are years in the making and rolling out now.
It seems that everyone, everywhere who is driving the Green Revolution, believes in green hydrogen.
It is important to note-Hydrogen Could Be a Baseload Power Like nuclear, like oil and gas – as opposed to wind and solar. But of course, you have to store it properly. As the world is turning to hydrogen, the first major obstacle in this industry is storing IT.
Think what does this mean? It means hydrogen storage Going to be worth a lot of money. And I have stock where you can get a big salt dome for potential hydrogen storage inside a publicly traded micro-cap stock—for free.
its Red Moon Resources-rmk-tsxv.
Earlier this year I told you about the near-term market and cash flow potential of their Great Atlantic Salt Deposit. It could fill a huge supply gap in the North American salt market, replace costly imports—and generate large amounts of reliable cash flow. for decades.
Now, what I didn’t know then – in 2019 RMK acquired a salt dome about 15km inland from its Great Atlantic Salt Deposit. At that time, the market thought only of storing natural gas in these large underground salt caves. It was not a sexy business.
Fast forward two years now and these salt domes have become one of the sexiest geological assets in the world – because they can efficiently store hydrogen.
This is a surface opportunity, because at this point – despite their low operating cost and excellent storage capacity – only a few salt caves have been built to store hydrogen. I think that’s why so few investors know about it.
as far as i know There are only six in operation Today. Three are located in northeastern England, and three others are located in Texas.
This is changing – rapidly – especially in Europe, where the European Commission has such aggressive green hydrogen plans. In a project funded by the German government, called the HYPOS alliance, more than 100 different companies are coming together to build a giant salt storage cave in the Central German Chemical Triangle in Saxony-Anhalt.
French gas utilities Terega and Hydrogen de France are also getting ready to launch a HyGeo pilot project with a salt cave in southwestern France.
More are coming with certainty about how the dominant green hydrogen energy is about to become the key to the transition. Once you find the right geology, they can be put to use quickly – you send water into a drill hole to dissolve the salt, fetch the brine and properly dispose of it – and voila! You have a highly sought-after cave.
Now, Red Moon is rolling out this salt dome — they call it Fischel’s Brook — into a new micro-cap public company and making it green energy pure play.
This means that RMK shareholders are basically getting a new Hydrogen Play micro-cap (and no other Pure Play micro-cap exposed to hydrogen storage that I can see) for free.
Underground salt caves are the cheapest and most obvious hydrogen storage facilities—and in the stock market, they’re more of an “indie” theme, gaining a cult following among hard-core green investors.
But there’s no way to drive this hydrogen angle into a micro-cap – until now.
And it’s potentially a huge hydrogen storage facility. Four drill holes have shown a thickness of more than 400 meters in an area of 2.25 square kilometres. The Red Moon recently took over 75 square kilometers of land around Fischel Brook.
So RMK shareholders get a lone salt asset today; A company builder in itself. It will be a potential cash cow as it is both large and highly rated. Its valid 43–101 resource estimate exceeds 900 million tonnes with >95% NaCl.
At $50/tonne (US), it has been an incredible potential cash cow for decades – one that will attract not only retail and institutional investors, but strategic industry players as well. North America imports 8-10 million tonnes of salt per year.
Now RMK President with Salt Expert Roland Howe – He Developed Compass Minerals’ (CMP-NYSE) The Goderich Ontario mine is the world’s largest underground salt mine – a very valuable asset.
(Note that the US salt operating unit of Germany’s K+S AG has just been sold for US$3.2 billion in a bidding war involving Cerberus Capital and Koch Industries. (9) Red Moon has a market cap of $40 million is. HELLO!).
Which says there is huge potential for RMK stocks as they develop the Great Atlantic Salt Deposit—much less than the salt dome’s worth!
That’s why I say Red Moon’s Fishel’s Brook Salt Dome is free. RMK actually achieved this years ago, when most investors couldn’t spell hydrogen.
do not underestimate
Hydrogen Stocks’ ESG Appeal
Green Hydrogen is and will be a monster meme for the market in 2021 – 2022.
Green hydrogen is hydrogen that is made with electrolyzer which converts water into hydrogen using renewable energy from solar and other sources. Blue and gray green Hydrogen is obtained from fossil fuels.
ESG funds are sitting on billions of dollars in cash, with more pouring in daily. They desperately need real “green” places to put that money and green hydrogen is sure to be a big one.
Just follow the money and it tells us that green hydrogen is going to be a big part of the move to renewable energy. Bank of America has quantified this and believes that green hydrogen is going to be a $11 trillion market by 2050.
The green hydrogen snowball is already rolling.
There are currently more than $90 billion worth of upstream, midstream and downstream green hydrogen projects in the global pipeline, according to Bloomberg New Energy Finance.
Source: https://globuc.com/news/top-5-green hydrogen-projects-announced-in-2020/
The Institute of Energy Economics and Financial Analysis is also monitoring dozens of green hydrogen electrolyzer projects globally and has identified those with a combined capacity of 50 gigawatts and a project cost of $75 billion. (2)
More numbers…..Europe’s $850 billion green economic recovery plan includes a big bet on green hydrogen.
Last summer the European Commission announced a goal of six-fold increase in capacity to produce renewable green hydrogen by 2024 – doing so is expected to create thousands of jobs and eliminate all emissions from industry and transport. (3)
To do this Europe would spend hundreds of billions on green hydrogen.
Like everyone else—Canada is betting big on green hydrogen. This means that we will need a place to store our belongings.
In December 16, 2020, Canada’s Hydrogen Strategy for the Release of … The Government of Canada stated that the lack of primary infrastructure (transportation and storage facilities, refueling infrastructure) is a significant challenge that must be overcome.
There’s a challenge with the storage infrastructure for hydrogen, and salt domes are the most economical places to store hydrogen – suddenly someone who’s already sitting on one is sitting in a cat bird’s seat.
There is now a red moon. And investors can buy one of the very few Next Great Asset Play inside this micro-cap right now.
- https://greenhydrogencouncil.com/wp-content/uploads/2020/01/Path-to-Green Hydrogen-Competitiveness_Full-Study-1.pdfhttps://greenhydrogencouncil.com/wp-content/uploads/2020/01 /path -to-green hydrogen-competition_complete-study-1.pdfhttps://www.cnbc.com/2020/09/27/green-hydrogen-is-at-a-tipping-point-with-11-trillion-market-set-to-explode-from-bank-of-america .html
- https://www.forbes.com/sites/arielcohen/2020/10/19/the-green-green hydrogen-revolution-is-now-underway/?sh=163b5167232c
- https://www.bloomberg.com/news/articles/2020-07-07/green hydrogen-s-role-in-europe-s-future-gets a-little-clear? sref=AzJ3nZS9
Red Moon Resources This article is reviewed and sponsored. The information in this newsletter does not constitute an offer to sell or buy any securities of a corporation or entity, including US-traded securities or US-quoted securities, in the United States or to US individuals. Securities may not be offered or sold in the United States in compliance with or exempt from the registration requirements of the Securities Act and applicable U.S. state securities laws. Any public offering of securities in the United States may be made only through a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has approved or disapproved the contents of any newsletter.
Keith Schaefer is not registered with the United States Securities and Exchange Commission (“SEC”): as a “broker-dealer” under the Exchange Act, as an “investment advisor” under the Investment Advisors Act of 1940, or any other capacity in. He is not a broker-dealer or investment advisor or registered with any state securities commission or authority in any other capacity.
Keith Schaefer owns Red Moon Resources stock.
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