TULSA, Okla. and VANCOUVER, British Columbia — 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.
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