While the market is back on form today, one ASX hydrogen share is standing out with a stunning gain.
At one stage today, the Neurizer Ltd (ASX: NRZ) share price was up a whopping 86% to 9.5 cents.
Its shares have pulled back a touch since then but remain up 49% to 7.6 cents at the time of writing.
What's going on with this ASX hydrogen share?
Investors have been scrambling to buy this ASX hydrogen share on Thursday thanks to the release of a potentially important announcement.
According to the release, Neurizer has entered into a binding contract with Meijin Energy Investments (MEI), which is a part of Meijin Group, China's largest integrated hydrogen company.
The agreement will see the company initially provide its expertise and services to conduct detailed assessments of two sites owned by Meijin. Following these assessments, Neurizer will offer its intellectual property and operate in situ gasification (ISG) sites under a licensing agreement.
Under the terms of the contract, MEI will pay Neurizer a license fee of US$25 million per site. Additionally, the two parties will establish a joint venture partnership at these sites in China.
Management notes that the agreement presents the ASX hydrogen share with a significant opportunity to participate in China's rapidly growing hydrogen market. Neurizer Chairman, Justyn Peters, said:
The execution of this contract is an exciting development for ISG between NRZ and our Chinese partners. The newly formed trading platform will provide NRZ with access to the Chinese hydrogen market, and with a trusted partner with access to a significant revenue stream. Project evaluation has already commenced and with travel restrictions lifted and the progression of the hydrogen economy in China we are well placed to take advantage of the rapidly growing market in China. This development is complementary to our Leigh Creek urea project with our Chinese team working on the China project and our Australian team working on the NRUP.
