SANTA CLARITA, Calif. - NewHydrogen, Inc. (OTCMKTS:NEWH) has provided an update on its collaboration with the University of California Santa Barbara (UCSB) to develop a novel, cost-effective method for producing green hydrogen. The company's technology, ThermoLoop™, aims to leverage heat instead of electricity to split water into hydrogen and oxygen, potentially reducing the cost associated with green hydrogen production.
Green hydrogen, typically produced through electrolysis powered by renewable energy, is seen as a key component in the transition to cleaner energy systems. However, the cost of green electricity remains a significant barrier, accounting for 73% of green hydrogen's production cost. NewHydrogen's CEO, Steve Hill, emphasized the importance of their work in addressing this challenge and the potential market opportunity it represents, estimated at $12 trillion.
Since August 2023, the UCSB research team has been exploring new material systems and process designs for thermochemical water splitting. They have successfully designed and constructed a reactor system test stand and have produced hydrogen using a thermochemical reaction cycle. This advancement allows for the performance evaluation of synthesized candidate materials under various conditions.
The team employs a thermodynamic screening methodology to identify materials with suitable redox properties for the chemical looping redox process that operates at industrial temperature ranges, below 1000°C. The process consists of two steps: one for hydrogen production and the other for material recovery and oxygen production, in a continuous loop.
Initial candidates are rigorously studied, with thermogravimetric analysis quantifying their reduction and oxidation capabilities, and X-ray diffraction analysis providing insights into material changes during these processes. The UCSB team is also developing a thermodynamic model for exploring solid-state phase change materials and high-temperature complex liquids.
Hill expressed satisfaction with the progress and the innovative approach taken by the UCSB team, highlighting the potential for substantial cost reduction by using inexpensive heat sources such as concentrated solar, geothermal, nuclear reactors, or industrial waste heat, instead of expensive electricity.
This update is based on a press release statement from NewHydrogen, Inc. The company's forward-looking statements involve risks and uncertainties, including economic, competitive, and other factors that could affect the company's operations and markets. These statements are based on current expectations and are subject to change.
InvestingPro Insights
In light of NewHydrogen, Inc.'s innovative strides in the green energy sector, a glance at the company’s financial health and stock performance is crucial for investors. With a market capitalization of just $5.28 million, NewHydrogen is a small player in the industry, yet it holds more cash than debt on its balance sheet, an encouraging sign for stakeholders. However, the company is not profitable over the last twelve months, as indicated by its negative P/E ratio of -0.94 and an operating income of -$5.73 million, reflecting the challenges faced by early-stage technology firms.
The stock has experienced significant volatility, with a price drop of over 34% in the last six months and nearly 49% over the last year. This underscores the InvestingPro Tip that NewHyrogen's stock generally trades with high price volatility. Despite these challenges, the company's liquid assets exceed its short-term obligations, which could provide some cushion against financial headwinds.
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