Underground salt domes are the hottest green commodity you’ve never heard of.
But governments in Europe and North America are spending A LOT of money developing these massive underground caverns to hold energy dense hydrogen, in their zeal to go net neutral or zero carbon.
This is actually one of the greenest ideas that makes a lot of economic sense. Hydrogen has relatively high “energy density”; one cubic meter of hydrogen can power an average US home for two weeks.
I was shocked to learn how far down the green hydrogen road the entire world already is.
At this point more than 18 different federal governments……that represent 70% of world’s GDP have already fully developed national green hydrogen strategies in place. (1) These are developed strategies that are years in the making and rolling out now.
It seems everyone, everywhere who is driving the green revolution believe in green hydrogen.
It’s important to note—hydrogen can be a baseload power like nuclear, like oil and gas—unlike wind and solar. But of course, you have to STORE it properly. As the world transitions to hydrogen, the first big bottleneck in this industry is STORING IT.
Guess what that means? It means hydrogen storage is going to be worth A LOT of money. And I have the stock where you can get a HUGE salt dome for potential hydrogen storage inside a publicly-traded micro-cap stock—for FREE.
It’s RED MOON RESOURCES—RMK-TSXV.
Earlier this year I told you about the near-term market and cash flow potential of their Great Atlantic Salt Deposit. It could fill a huge supply gap in the North American salt market, replacing expensive imports—and generating a huge amount of reliable cash flow for decades.
Now, what I didn’t know then was—back in 2019 RMK had acquired a salt dome, about 15 km inland from their Great Atlantic Salt Deposit. Back then, the Market only thought about storing natural gas in these big underground salt caverns. It was NOT a sexy business.
Now fast forward two years and these salt domes have become one of the sexiest geological assets on the globe—because they can efficiently store hydrogen.
This is a ground floor opportunity, because at this point–despite their low operating cost and excellent storage potential—only a few salt caverns have been created to store hydrogen. I suppose that is why so few investors are aware of it.
As far as I know there are only six in operation today. Three are located in northeast England, and three others in Texas.
That is changing—FAST—especially in Europe, where the European Commission has such aggressive green hydrogen plans. One project funded by the German Government, called the HYPOS alliance, has more than 100 different companies coming together to build a massive salt storage cavern in the Central German Chemical Triangle in Saxony-Anhalt.
The French gas utility Teréga and Hydrogène de France also is getting ready to launch the HyGéo pilot project with a salt cavern in southwestern France.
More are surely coming given how key green hydrogen is about to become key to the energy transition. Once you find the right geology, they can quickly be put into use–you send water down a drill hole to dissolve the salt, bring up the brine and dispose of it properly-and voila! You have a highly sought-after cavern.
Now, Red Moon is spinning out this salt dome—they call it Fischell’s Brook—into a new micro-cap public company and making it a green energy pure play.
That means RMK shareholders are basically getting a new hydrogen play micro-cap (and there are NO other pure play micro-caps with exposure to hydrogen storage that I can see) for FREE.
Underground salt caverns are the cheapest and most obvious hydrogen storage facilities—and in the stock market, they’ve kind of been like an “indie” theme, gaining a cult following among hard core green investors.
But there has been no way to play this hydrogen angle in micro-caps—until now.
And this is potentially a MASSIVE hydrogen storage facility. Four drill holes have shown 400 meter plus thicknesses over an area of 2.25 square kilometers. Red Moon also recently staked more ground—75 square kilometers—around Fischell Brook.
So RMK shareholders today get a stand-alone salt asset; a company maker on its own. It will be a potential cash cow as it is both big and high grade. It has a valid 43-101 resource estimate greater than 900 million tons of >95% NaCl.
At $50/ton (U.S.), it’s an incredible potential cash cow—for decades—that will attract not just retail and institutional investors, but strategic industry players. North America imports 8-10 million tons of salt per year.
With salt expert Rowland Howe now RMK President – he developed Compass Minerals’ (CMP-NYSE) Goderich Ontario mine into the largest underground salt mine in the world – that salt deposit is a very valuable asset.
(Consider that Germany’s K+S AG’s Americas Salt operating unit just sold for US$3.2 billion in a bidding war that included Cerberus Capital and Koch Industries. (9) Red Moon has a $40 million market cap. HELLO!).
What that says is there is HUGE potential for RMK stock as they develop The Great Atlantic Salt Deposit–much less what the salt dome could be worth!
That’s why I say Red Moon’s Fischell’s Brook salt dome is free. RMK actually acquired it years ago, when most investors couldn’t spell hydrogen.
Do Not Underestimate
The ESG Appeal of Hydrogen Stocks
Green Hydrogen is and will be a Monster Meme for the Market in 2021 – 2022.
Green hydrogen is hydrogen that is created with electrolyzers that convert water into hydrogen by using renewable energy from solar and other sources. Blue and gray green hydrogen comes from fossil fuels.
ESG funds are sitting on billions of dollars of cash with more pouring in daily. They desperately need actual “green” places to put that money and green hydrogen is certain to be a big one.
Just follow the money and it tells us that green hydrogen is going to be a huge part of the move to renewable energy. Bank of America has quantified it and believes that green hydrogen is going to be an $11 trillion market by 2050.
The green hydrogen snowball is already rolling.
According to Bloomberg New Energy Finance there are currently over $90 billion worth of upstream, midstream, and downstream green hydrogen projects in the global pipeline.
Source: https://globuc.com/news/top-5-green hydrogen-projects-announced-in-2020/
The Institute of Energy Economics and Financial Analysis is also monitoring dozens of green hydrogen electolyzer projects globally and have identified those with a combined capacity of 50 gigawatts and project costs of $75 billion. (2)
More numbers…..Europe’s $850 billion green economic recovery plan includes a big bet on green hydrogen.
Last summer The European Commission announced a target for a six-fold increase in capacity to produce renewable green hydrogen by 2024——in doing so the expectation is the creation of thousands of jobs and the elimination of all emissions from industry and transport. (3)
To do that Europe will be spending hundreds of billions on green hydrogen.
Like everyone——Canada is betting big on green hydrogen. That means that we are going to need a place to keep the stuff.
In the December 16, 2020, Hydrogen Strategy for Canada release…the Canadian Government said a lack of primary infrastructure (transportation and storage facilities, refueling infrastructure) is a key challenge that must be overcome.
With storage infrastructure for hydrogen a challenge, and with salt domes being the single most economic place to store hydrogen—suddenly anyone who is already sitting on one is sitting in the cat bird’s seat.
That’s where Red Moon is now. And investors can buy one of the very few Next Great Asset Plays—for free inside this micro-cap right now.
- https://green hydrogencouncil.com/wp-content/uploads/2020/01/Path-to-Green hydrogen-Competitiveness_Full-Study-1.pdfhttps://green hydrogencouncil.com/wp-content/uploads/2020/01/Path-to-Green hydrogen-Competitiveness_Full-Study-1.pdfhttps://www.cnbc.com/2020/09/27/green hydrogen-is-at-a-tipping-point-with-11-trillion-market-set-to-explode-says-bank-of-america.html
- https://www.forbes.com/sites/arielcohen/2020/10/19/the-green-green hydrogen-revolution-is-now-underway/?sh=163b5167232c
- https://www.bloomberg.com/news/articles/2020-07-07/green hydrogen-s-role-in-europe-s-future-becomes-a-little-clearer?sref=AzJ3nZS9
RED MOON RESOURCES has reviewed and sponsored this article. The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons. Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter.
Keith Schaefer is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.
Keith Schaefer owns Red Moon Resources stock.