The Pure Hydrogen Corp Ltd (ASX: PH2) share price is having a terrible week, shedding more than 20% in value. In fact, a number of hydrogen companies have seen their shares plummet amid the broader S&P/ASX 200 Index (ASX: XJO) backtracking today.
At the end of Wednesday's market session, Pure Hydrogen shares finished down a sizeable 9.23% at 59 cents. In contrast, the hydrogen sector has seen Hazer Group Ltd (ASX: HZR) shares fall 7.74% to $1.49, and Fortescue Metals Group Limited (ASX: FMG) slip 1.89% to $15.59. The latter is the parent company of the Fortescue Future Industries (FFI) business.
The benchmark ASX 200 index ended 0.68% lower to 7,369.9 points.
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What's going on with Pure Hydrogen shares?
Amid today's general sell-off, Pure Hydrogen investors may have decided to take profit off the table. The company's shares have soared by more than 100% in the past month alone, after all.
In addition, a report in The Age today highlighted that energy giant, Woodside Petroleum Ltd (ASX: WPL) was backing the belief that liquefied natural gas (LNG) would remain viable for the time being.
This may be weighing on investor concerns that the transition away from fossils fuels to cleaner, renewable energy won't happen overnight.
Green hydrogen, which is produced by splitting water molecules with renewable energy, is largely being established by smaller energy players.
Drilling update
Last week, Pure Hydrogen announced a positive update on the Botswana Coalbed Methane (CBM) Serowe Gas Project.
It advised that its joint venture partner, Botala Energy had finished spudding the Serowe 4 well. This is the first of a two-well program that is scheduled to be completed before the end of the calendar year.
In July, the company advised that it drilled Serowe 3 to a total depth of 477m and encountered 41m of interpreted gassy coal seams. Notably, this was more than 200% thicker than pre-drilling estimates, highlighting impressive results.
Serowe 4 and Serowe 5 are targeting a similar Serowe Coal Seam thickness of 15m while improving regional geological understanding. It is expected that both wells will be drilled sometime by the end of the year.
Once the results of the two exploration wells are received, Pure Hydrogen will choose a location of its planned commercial pilot program. This is anticipated to launch within the first half of 2022.
Pure Hydrogen share price summary
It has been an eventful 2021 for the Pure Hydrogen share price, with investors recording gains of around 650%. The company's share price reached a multi-year high of 83 cents last week, before treading lower since.
Pure Hydrogen commands a market capitalisation of roughly $180.48 million, with approximately 313.88 million shares on its registry.
