The Hexagon Energy (ASX: HXG) share price is rocketing today after the company released its quarterly activities and cash flow report.
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The Hexagon Energy share price is up 40.9% at the time of writing, trading at 15.5 cents per share.
Hexagon Energy is a mineral exploration company focused on downstream graphite and rare earth processing. Its rare earths project includes RAPID SX, and graphite includes the McIntosh Graphite Project in the Kimberley region of Western Australia. Operations are also underway at the Halls Creek Gold & Base Metals Project in WA.
The Hexagon share price has been a fast mover in recent days after the company acquired Ebony Energy on 23 April. This has enabled Hexagon Energy to start the development timeline for Ebony’s Pedirka Blue Hydrogen Project, which will spearhead the company’s shift towards renewable energy production.
Quarterly activities and cash flow report
In the report, Hexagon Energy outlined its plans following the acquisition of Ebony Energy. The acquisition means Hexagon now has full control of the Pedirka Blue Hydrogen Project in the Northern Territory.
It plans to immediately start a pre-feasibility study for Pedirka, which is slated for completion this year. Hexagon is also gearing up for a drill program at Halls Creek and has secured an electromagnetic survey. It’s also in ongoing discussions to “create shareholder value” at its McIntosh and Alabama projects.
The Pedirka project covers an area of just under 800km. Hexagon said the acquisition was timely, given the Australian government’s commitment to provide $275.5 million in funding to develop four regional clean hydrogen hubs and $263.7 million for carbon capture and storage technology in its upcoming budget.
Hexagon proposes that the project host a surface gasification plant producing “blue” hydrogen to supply domestic and export markets from coal feedstocks with zero carbon emissions.
In addition to being clean, hydrogen is a versatile energy source with applications across the transport, electricity, industrial and heating sectors. Hexagon is working with government and private sector entities to secure agreements that will accelerate the project’s pathway to production of hydrogen to meet the growth in demand in the Asia Pacific region.
What Hexagon Energy management said
Hexagon chair Charles Whitfield said the company had big ambitions in hydrogen production.
We are very excited to have finalised our acquisition of the Pedirka project. We strongly believe that Pedirka has the potential to become a regionally important producer of hydrogen that will help meet the increasing demand for carbon-neutral energy solutions in the Asia-Pacific region.
The acquisition of Pedirka is consistent with our focus on clean energy solutions and will hopefully support the conversion to hydrogen economies in the years ahead. We look forward to rapidly advancing the Pedirka Pre-Feasibility Study while also progressing our mineral assets.
Hexagon Energy share price snapshot
The Hexagon Energy share price has been one of today’s biggest movers on the ASX, but has also been rising strongly for some time.
Since the beginning of 2021, it’s nearly tripled from just over five cents per share. Overall, it’s up 52% this past week and 163% in 2021 to date.
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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.