Interim Results
30 September 2024
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Hydrogen Utopia International PLC
(the "Company" or "HUI")
Interim Results
Hydrogen Utopia International PLC, a company specialising in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, new materials or distributed renewable heat, is pleased to announce its results for the six months to 30 June 2024.
CEO Shareholders' Letter
Dear Shareholders,
I want to take a moment to reflect on the journey of successful companies like Nvidia. Once considered a penny stock for over two decades, Nvidia has become a leading force in the semiconductor industry. This remarkable turnaround is attributed to their strategic risk-taking and significant investments in research and development. Their experience serves as a powerful reminder that, while the path may be long, patience and perseverance can ultimately yield substantial rewards.
In a similar vein, Hydrogen Utopia is committed to making a meaningful impact in the fields of plastic destruction and hydrogen production. We acknowledge that we are still in the early stages of our development and face challenges, particularly in navigating regulatory complexities and securing funding. Nevertheless, we are proactive and eager to launch our first plant. Please do not forget that plastic production and consumption is growing exponentially yet only 10 % of plastics can be successfully recycled. We just need one insightful institution or investor to understand how important our waste plastic to hydrogen system is. Further, hydrogen is not just fuel for heavy vehicles but even plays a crucial role as a key component in semiconductor production.
Nonetheless, our primary focus remains on heavy-duty transport, with city buses and trucks being the main consumers of our hydrogen. The data is very promising. While the transition may appear slow, hydrogen is steadily becoming a significant force globally. The global hydrogen buses market is valued at approximately $10 billion in 2023 and is projected to grow significantly, reaching around $163 billion by 2030. This indicates a remarkable compound annual growth rate (CAGR) of 47.7%. This rapid expansion reflects increasing investments in hydrogen infrastructure and a growing emphasis on sustainable transportation solutions. The European hydrogen bus market is poised for significant growth in the coming years. Valued at around €500 million in 2023, the market is projected to reach approximately €7 to €10 billion by 2030, indicating a substantial increase. It's estimated that over 10,000 hydrogen buses could be in operation across various European cities by 2030, compared to around 1,500 in 2023. As of the beginning of this year Solaris- the largest public bus manufacturer in Europe received orders for 700 hydrogen-powered buses. Investment in hydrogen refuelling infrastructure is expected to exceed €3 billion by 2030, which will facilitate the expansion of hydrogen bus fleets. Additionally, the European Union plans to allocate over €1 billion specifically for hydrogen initiatives as part of its Green Deal and recovery plans, highlighting the importance of clean transport. Many European cities aim to have 50% of their public transport fleets operating on zero-emission technologies by 2030, with hydrogen buses playing a crucial role in achieving this ambitious goal. These figures illustrate the significant momentum and potential for the hydrogen bus market in Europe. Our system will be a perfect fit in this hydrogen-powered future. Our currently envisaged top location for deployment of a waste plastic to hydrogen system is Longford, where we are actively collaborating with Powerhouse Energy Group (AIM: PHE).
As you are aware, we have exercised our option to acquire a medicinal cannabis facility in North Macedonia, capitalising on the substantial growth in the European medicinal cannabis market. Ohrid Organics is making excellent progress overall. While Ohrid Organics is pushing hard to meet all necessary regulatory requirements, Ohrid Organics is pleased to say that they have finished product ready for supply to a major cannabis player which will be shipped upon meeting all regulatory hurdles. Ohrid Organics has grown high quality finished product, with additional quantities in quarantine and processing. Ohrid Organics is also now welcoming a number of key visitors interested in future sales contracts. Ohrid Organics is increasingly recognised as a high-quality, low-cost producer of premium medicinal cannabis, and expects to meet its profit forecast for 2025. The medicinal cannabis market is rapidly expanding, particularly in Germany, where recent decriminalisation has significantly reduced stigma for patients. Additionally, 21 out of 27 EU member states have legalised medicinal cannabis, leading to a severe supply shortage for patients of high-quality product.
Thankfully our hydrogen technology has garnered significant attention and support from the EU, indicating a strong demand for our solutions. We welcome Ursula von der Leyen's recent commitment to reducing bureaucratic hurdles, which will facilitate our progress. We have been patiently awaiting the easing of environmental regulations that have hindered technologies like ours for years. We are optimistic that the bureaucratic obstacles will now be significantly reduced.
With the unwavering support of our dedicated Board-who consistently go above and beyond-we have successfully reduced our operating losses and secured sufficient working capital to navigate these challenging times. In alignment with Winston Churchill's philosophy that "Success is the ability to go from failure to failure without losing your enthusiasm," I remain optimistic despite the challenges we face. I encourage all of you to maintain your enthusiasm and confidence in our journey.
Thank you for your continued support.
The full interim results are available via this link: Interim Results - 12:20:53 30 Sep 2024 - HUI News article | London Stock Exchange
For further information please contact:
Hydrogen Utopia International PLC
Aleksandra Binkowska
+44 20 3811 8770
Alfred Henry Corporate Finance Limited (LSE Corporate Adviser)
Nick Michaels/Maya Klein Wassink
+44 20 3772 0021
Novum Securities Limited (Broker)
Jon Belliss/Colin Rowbury
+44 20 7399 9400
About Hydrogen Utopia International PLC
HUI aims to become one of the leading new European companies specialising in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, new materials or distributed renewable heat.
A HUI facility uses non-recyclable mixed waste plastic as feedstock and turns it into syngas from which new products and energy can be produced. HUI anticipates that its revenues will be derived from a variety of sources, dependent upon location and configuration of the HUI facilities, including the sale of syngas, hydrogen and other gases, electricity and heat sales, and the payment to it of fees for a given quantity of non-recyclable mixed waste plastic received at a HUI facility.
HUI will target areas where there is significant private sector interest or potential, financial backing is accessible and or where substantial EU and/or government funded sources of grants and loans are or may be available. The global increase in fossil fuel-based energy prices reinforces the need for alternative, price competitive energy sources, which HUI's business model can provide.