Investment Highlights Company’s Pivot From Fossil Fuels to Green Energy

Source: Streetwise Reports   01/19/2022

Jericho Energy Ventures’ latest foray into the burgeoning hydrogen energy market is as the lead seed capital investor in a company with disruptive electrolyzer technology.

Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTCMKTS), once on the oil and gas side of the energy equation, has shifted to green energy, becoming an investor and incubator of companies involved with hydrogen energy production.

Jericho President Brian Williamson told Streetwise Reports that the company “saw the world evolving and developing. And for us, what we found most interesting was hydrogen. And what was interesting to us about hydrogen was its ability to offer what the current renewable environment couldn’t offer, which was: always available, storable, transportable energy…so the equivalent of natural gas, but with the profile to be developed in a cleaner, green and sustainable way.”

The transition began in June 2020 when the company raised CA$5 million through a fully subscribed non-brokered private placement of 50 million units at CA$0.10 each. One unit included one common share and one warrant exercisable for one common share at a price of CA$0.13, valid for 36 months.

In January 2021, Jericho announced the acquisition of Hydrogen Technologies, a company that has developed a “breakthrough high-temperature Dynamic Combustion Chamber (“DCC”) boiler that enables zero-emissions hydrogen to generate heat, hot-water, high-temperature steam, and Combined Heat & Power (“CHP”) through a closed-loop process” that emits no greenhouse gasses. The company noted that 37% of all fossil fuels used in U.S. industry are burned to produce steam.

Jericho’s transition to clean energy continued in July with its co-lead Series A investment in H2U Technologies Inc., a company developing “proprietary ultrahigh throughput, AI-driven, electrocatalyst discovery process for electrolyzer and fuel cell applications” in partnership with Southern California Gas Co. The firm is commercializing technology developed by Caltech.

Ryan Breen, Jericho’s head of corporate strategy, stated “H2U’s catalyst discovery process is a distinct advantage over traditional catalyst companies looking to serve the hydrogen market. Driving down the cost of green hydrogen is of vital importance to its adoption and JEV seeks to play a market-leading role in that pursuit. Moreover, we are thrilled to be joined by like-minded investors in recognizing the value of H2U’s proprietary technology and world-class Caltech team.”

Earlier this month, Jericho closed a non-brokered convertible debentures private placement financing, raising CA$5.7 million in aggregate gross proceeds, at the price of CA$0.70 per debenture, a premium to the market. The debenture pays annual interest of 4%, and the principal is payable 36 months after closing. The debenture is convertible to one common share at CA$0.70. One share purchase warrant is included in each debenture, entitling the holder to acquire an additional common share at the price of CA$1.00.

The company noted that the proceeds from the financing will be used for “working capital as well as other growth-focused initiatives.”

Jericho just announced what one of the growth-focused initiatives were with the lead seed series investment in Supercritical Solutions Ltd. The firm is developing a new class of water electrolyzer that will allow low-cost hydrogen production. Jericho is joined by Chris Sacca’s Lowercarbon Capital and New Energy Technology in the investment and global mining company Anglo American and Deep Science Ventures are existing investors.

According to the company, one of the issues with hydrogen production is current electrolyzer technology puts out hydrogen at a lower pressure than what’s needed for most uses, necessitating expensive compressors. Supercritical is working on electrolyzer technology that will allow hydrogen to be emitted at pressures high enough that the need for compressors is eliminated in many cases, streamlining and lowering the cost of hydrogen production.

Jericho’s recent investments show that the company has transformed itself from a fossil fuel company to one that is meeting its goal of “developing high growth technology companies across the hydrogen value chain and searching for technologies to address industry’s pain points.”

Read what Technical Analyst Clive Maund and Penny Queen have to say about Jericho Energy Ventures.

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