Jericho Expands Energy Portfolio with Agreement for the Acquisition of Hydrogen Technology
TULSA, Okla. and VANCOUVER, British Columbia, Jan. 22, 2021 (GLOBE NEWSWIRE) -- Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF) is pleased to announce that it is has entered into an agreement for the acquisition of all the assets of Hydrogen Technologies Inc. (“HTI”). HTI holds robust intellectual property for 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. The closing of the acquisition remains subject to the approval of the TSX Venture Exchange and also the approval of the shareholders of HTI.
HTI’s patented zero emissions DCC boiler system aims to decarbonize the nearly $30 billion global commercial and industrial heating industry while providing best-in-class energy efficiencies.
The traditional water heating, steam generation and CHP market has been powered by fossil fuel for over 100 years, producing harmful Carbon Dioxide (CO2), nitrogen oxides (NOx) and sulfur dioxide (SO2) emissions which are increasingly being phased out or eliminated through government-led emission-based performance standards worldwide
Globally, 85% of all Industrial Boilers emit harmful greenhouse gas emissions (GHG) with over 35% of the Industrial Boiler install base still powered by coal
Critically, 37% of all fossil fuels utilized in US Industry today are burned to produce steam, with all the major industrial energy users devoting significant proportions of their fossil fuel consumption to steam production: food processing (57%), pulp and paper (81%), chemicals (42%), petroleum refining (23%) and primary metals (10%)
Steam is used in 80% of the electrical generation in the US
HTI’s DCC can be used for a variety of commercial and industrial applications, generating zero emission electricity when combined with a turbine genset in CHP applications. The patented DCC technology:
Awarded the Solar Impulse Efficient Solutions Label in 2019
Requires no air permit, with water as the only by-product
Eliminates all NOx, SOx and CO2 emissions through a closed-loop combustion process
Produces at a 30% greater efficiency than traditional fossil fuel boilers with a 97% overall boiler thermal efficiency
Critically, the Total Cost of Production ($ / lb steam) is cost competitive to traditional hydrocarbon boiler systems
There are large commercial and industrial (“C&I”) markets which HTI is specifically targeting with their zero emissions DCC Hydrogen Boiler. According to market research, the C&I market for boilers represents a $30 billion annual market and is estimated to grow between 5 to 7% per year, over the next seven years, with low and zero carbon solutions expected to outpace:
Commercial markets for heat or hot water as an end-use: Shopping malls, universities and institutions, airports, hotels, stadiums, hospitals, and government buildings
Industrial markets for steam-generation as an industrial process end-use: refining and petrochemical, pulp and paper, chemical and pharmaceutical, food processing, refrigeration, metals, and mining among others
For Combined Heat & Power applications: Utility Power Generation, Energy Storage, On-Site Distributed Energy, and Data Centers will be critical markets for a zero-emissions DCC solution
As a part of the transaction, Jericho will also be acquiring the highly dedicated and robust technical team from HTI including its founder, Ed Stockton and President, Janet Reiser. Adding Ed’s technical capabilities and expertise related to the hydrogen market will allow for a seamless transition in building up the DCC boiler’s commercial success within our low-carbon energy portfolio. Prior to founding HTI in 2005, Ed spent most of his career with Florida Power & Light (now NextEra Energy) focused on low-carbon technologies with direct power plant experience, including equipment startup, maintenance, due diligence, government relations and regulation promulgation. Janet, with over 35 years of experience in energy management and engineering, most recently running the governmental Alaska Energy Authority, will continue to lead HTI’s day-to-day operations and sales efforts.
As consideration for the technology acquisition, Jericho will deliver to HTI, 6,700,000 shares of Jericho Common Stock. The Shares will be restricted pursuant to agreed upon milestones related to commercial deployment and technological successes. Jericho will pay the out-of-pocket costs associated with the transaction on behalf of HTI and winding up their entity.
Brian Williamson, CEO of Jericho Oil Corporation, states, “We are excited to announce the acquisition of HTI’s patented and novel zero emission hydrogen technology and welcome their world class team. The world is increasingly demanding a transition away from traditional energy sources to low carbon solutions – HTI’s hydrogen solution expands our portfolio to include a technology that will transition one of the largest carbon emitters to a zero-emission energy source. We look forward to receiving the exchanges final approval and updating our shareholders accordingly on our go-forward energy portfolio strategy.”
Separate from the transaction, Jericho also announces that it has granted incentive stock options (the “Options”), pursuant to its stock option plan (the “Plan”), of 700,000 common shares of the Company, to certain directors and officers of the Company. The Options are exercisable at a price of $0.45 CAD for a period of up to 5 years.
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Jericho's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Jericho's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Although Jericho believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Forward-looking information and statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information and statements which include, but are not limited to: the effects of and risks associated with the ongoing COVID-19 pandemic, the impact of general economic conditions, industry conditions and current and future commodity prices including sustained low oil prices, significant and ongoing stock market volatility, currency and interest rates, governmental regulation of the oil and gas industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; liabilities inherent in oil and gas exploration, development and production operations; and the other factors described in our public filings available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information and forward-looking statements contained in this news release are made as of the date of this news release, and Jericho does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Director, Investor Relations