TD's Take
Another Hydrogen Contract Announced
Event
Xebec announced a hydrogen ‘Gas-as-a-Service’ contract.
Impact: NEUTRAL
Details: Xebec has commissioned an automated hydrogen generation system,
producing 560kg of hydrogen per day (205 tons per year) under a 15-year 'Gasas-a-Service' contract with TAYRA, a company that operates a used lubricant oil
re-refinery in Turkey. The hydrogen produced by Xebec’s system will hydro-treat
used oils to remove sulphur, chlorine, nitrogen, phosphorous, silica and saturation
of aromatics, reducing emissions from Group II base lubricating oils.
TD View: This contract is another positive step toward Xebec's ambitions of pursuing
a recurring revenue model for its hydrogen-related businesses and adds to a growing
project portfolio. However, no financial details are provided in the press release and,
therefore, we expect that the project is not material on a stand-alone basis. As a
result, we will not be making any changes to our estimates at this time