Elixir Energy (ASX:EXR) share price lifts on hydrogen update

Shares in the gas explorer had a foray into the green this morning….

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Elixir Energy Ltd (ASX: EXR) share price is steady in afternoon trade after a 6% surge earlier today.

Shares in the gas explorer shot up to 26.5 cents apiece mid-morning but have slipped back amid general market malaise.

Let's take a look at what's happened with the Elixir share price today.

male worker in hi-vis checking the balance of the hydrogen tanks

Image source: Getty Images

Hydrogen update propels Elixir share price higher

Shares in Elixir received a boost in morning trade after the company released a compelling presentation on its interest in hydrogen and the market potential.

The company highlighted various initiatives that its subsidiary in Mongolia, GOH Clean Energy LLC, has been pursuing.

According to the presentation, Elixir considers Mongolia as one of the best locations in the world to produce green hydrogen.

The factors that make the location attractive include its proximity to Chinese markets, low-cost delivery options and few competitors.

Elixir noted its current natural gas assets in Mongolia are highly complementary to pursuing more clean energy ventures.

In particular, Elixir highlighted the market opportunity in China.

The company noted the physical nature of hydrogen makes it expensive to ship long distances. As a result, hydrogen sources adjacent to large users like China present a massive competitive advantage.

More on Elixir Energy

The Elixir share price has made numerous headlines this past month.

Most recently, the company released an operations update relating to its Nomgon IX Coal Bed Methane site.

Elixir's management noted the company now has 3 new potentially productive sub-basins in its inventory.

Shares in Elixir have remain buoyed since the company announced it had extended the area of discovery in its Kingston sub-basin in late August.

Recently, the Elixir share price has also been boosted by the recent price rally in the oil markets.

Snapshot of the Elixir share price

The Elixir share price has had a volatile run in 2021.

Shares in the gas explorer shot to record highs in April and have been progressively sold down since.

Despite the sell-off, the Elixir share price remains more than 104% higher since the start of the year.

At the time of writing, shares in Elixir are flat for the day at 25 cents apiece after hitting 26.5 cents around 11 o'clock.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a sour end to the trading week this Friday.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Broker Notes

Guess which ASX stock could more than triple in value according to Morgans!

A 285% return could be on the cards here according to the broker.

Read more »

A happy youngster holds a giant bag of carrots at a supermarket fruit and vegie section, indicating savings made by buying in bulk.
Opinions

2 ASX shares I'd buy if the market fell another 10%

Pullbacks are great times to buy...

Read more »

A group of friends push their van up the road on an Australian road.
52-Week Lows

This ASX 200 stock just hit a multi-year low. Here's what's behind the slide

CAR Group shares hit a multi-year low as selling continues.

Read more »

A man sitting at his dining table looks at his laptop and ponders the share price.
Materials Shares

ASX lithium shares 'compelling' as top broker adjusts ratings

UBS predicts the global oil shock caused by the war in Iran will drive higher demand for electric vehicles.

Read more »

a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.
IPOs

The newest ASX gold company makes a strong debut on the bourse, up more than 20%

Shareholders would have to be happy with this first day.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Dividend Investing

8% yield: The ASX is getting a new dividend stock that pays out monthly

This soon-to-be stock has averaged an 8% yield since 2016...

Read more »