FormerXBC Inc XEBEQ

Excerpts and observations from Hygear's news in Turkey

[tamaracktop]

"Approximately 560 kg of hydrogen per day (205 tons per year) will be delivered under 125 bar by the fully automated system under a 15-year Gas-as-a-Service contract. "

"In addition, we were able to showcase our expertise in compression by operating at an impressive 125 bar on a 24/7 basis. This level of operation will lend well to other applications such as hydrogen refuelin stations where this pressure and reliability is also needed,” said Marinus van Driel, President of Xebec Europe."

- 560 kg's a day is alot of hydrogen.
- Hydrogen doesn't weigh very much.

"The average price of hydrogen for a light-duty fuel cell electric vehicle (passenger car) in California is $16.51 per kilogram, according to the 2019 Joint Agency Report (p17). As more retail stations open and have higher utilization, the price per kilogram of hydrogen is projected to drop to ranges more competitive with the prices of gasoline. For example, in late 2019, the True Zero Oakland hydrogen station opened with three times the capacity of previous stations. It offers hydrogen at $13.11 per kilogram (tax included) due, in part, to the larger volume and other factors."

[catchascatchcan]

It is interesting TT, but I would shy away from drawing any conclusions, as they are more than likely misleading.  The below might lead someone to believe we're making 560*365*16.51=$3,374,644 per year.  Given that we did a PR for $120K annual revs, and provided ZERO facts surrounding this one, we can assume nothing of the sort sadly.

[Newtrader1982]

it's roughly a 10 million dollar contract so about 650k a year.

[Newtrader1982]

which would suggest a roughly 3 dollar per kg which is on the lower end of the price range for green hydrogen

[catchascatchcan]

New, where did you get the ~$10M contract value from?  Please share and thanks

[Newtrader1982]

someone had posted here they contacted Brandon Chow and asked about it and that it was a 10 million dollar contract.

[catchascatchcan]

Ah.  It's a nice trait to trust people, but it's more likley that he took a ride in Santa's sleigh.  IR departments do not disclose contractual terms and conditions of deals to a random tom/dyck/harry over the phone.  In the same way that they are obliged to disclose material information good&bad to shareholders, or they can be liable (XBC lawsuits - case in point

[Newtrader1982]

I don't recall the original post I would have to look back and find it but I don't think numbers were disclosed rather the formula to figure out the size of the deal based on previous numbers disclosed. That's what the 10 million is based upon I believe. It seems reasonable and falls within the reasonable range for prices of hydrogen I still think it's correct.

[Newtrader1982]

Just a little update for the board after reading this post I decided to email Bradon myself and recieved a response this morning confirming that it is indeed in the range of 10 million dollar contract no exact numbers given.