HPQ Silicon Resources Inc. [TSXV-HPQ; OTCQX-HPQFF; FWB-UGE], an innovative silicon solutions and technology development company, has engaged in a Memorandum of Understanding with EBH2Â Systems SA, (“EBH2“) a Swiss company that possesses a proprietary electrolysis technology that can efficiently extract, from virtually any water source including salt water, a Clean Hydrogen also called Green Hydrogen that can be used to create low-cost electricity with no environmental impact.
EBH2Â has filled a provisional patent for its new and novel process to make Green Hydrogen, a process that is scalable and adaptable to numerous applications from various modes of land and sea transport to single home dwellings, district wide power generation and large-scale industrial applications. EBH2Â first successfully tested prototype model has a clean energy production capacity starting at 1 Megawatt of power that can be produced over 7 days from 2 litres of water; sufficient energy to power a typical three (3) bedroom suburban house.
EBH2Â believes it can scale to power the planned high purity silicon and Nano silicon production by HPQ. If successful, HPQ proposes to bundle the energy production capability of EBH2Â systems with its silicon production to further reduce the environmental footprint of its developing high purity silicon, nano powders, and other Renewable Energy products.Â Â Under the Agreement HPQ can acquire a perpetual world-wide license to sell or deploy the bundled HPQ Technologies – EBH2Â generator-based systems anywhere in the world.
The Agreement establishes the terms of the creation of a new Joint venture Company (“NEWCO”) owned by HPQ and EBH2Â that will market, sell and service EBH2Â systems and products in North America (Canada, Mexico, and the United States).Â Â The potential cost and GHG reduction benefits of the EBH2Â first commercial size model are huge plus the units could readily replace solar panels or standby generators for homeowners. The global standby generator market is anticipated to grow by 4.9% CAGR between 2021 and 2025, attaining US$ 1.3 billion by 2025. North America has the largest market share at 33.87% in 2019, a market expected to grow with a CAGR of 3.7% to 2025.1
To encourage new and creative solutions to bolster clean energy production, the U.S. Department of Energy has just launched what is described as an ambitious Hydrogen Earthshot Program aimed at reducing the cost of clean hydrogen by 80% to $1Â perÂ 1 kilogramÂ inÂ 1 decadeÂ (by 2030).
Currently, production of Clean Hydrogen from renewable energies (Green Hydrogen), cost about US$5 per kilogram, giving Clean Hydrogen a cost disadvantage compared to hydrogen produced using fossil fuels (Grey and Blue Hydrogen) which have a US$1 per kilogram cost2. EBH2Â is confident its cost per kilogram to produce its Clean Hydrogen is less than US$1, indicating that the EBH2Â module already surpasses the Hydrogen Earthshot program goals and is cost competitive compared to fossil fuels base hydrogen.
“HPQ has been at the forefront of Silicon innovation development since 2015, yet the fact remains that converting quartz into silicon is a highly energy intensive process. EBH2 Systems SA, with their unique process to extract hydrogen from water to generate cheap green energy present HPQ with one of these games changing synergetic opportunities that we simply could not overlook,” saidÂ Bernard Tourillon, President and CEO of HPQ Silicon.Â “When EBH2Â demonstrates that the system can do what they say it will, HPQ will be incredibly well positioned to reduce the cost and environmental footprint of making its silicon materials all the while opening up new, and massive addressable markets for a system that can produce cheaply green hydrogen, on demand.”