Telstra Commits $1.5M as GreenHy2 Reports $1.04M Cash and Key Trials

Quarterly Financial Overview

GreenHy2 Limited (ASX: H2G) closed the December 2024 quarter with $1.041 million in cash, down slightly from $1.105 million the previous quarter. Operating expenses remained tightly controlled at $377,000, covering manufacturing, staff, and administrative costs. The company’s cash flow was supported by $428,000 in receipts from its Project MacDonald Hill telecommunication tower standalone power supply (SAPS) initiative.

Strategic Focus on Solid State Hydrogen Storage

GreenHy2 continues to prioritise its core renewable energy strategy centered on Solid State Hydrogen Storage Batteries. These batteries underpin 100% renewable fraction generation, targeting stand-alone power supplies for utilities, telecommunications, remote communities, and private operators. The technology offers a safer, more cost-effective alternative to diesel generators, aligning with global decarbonisation efforts.

However, the market for solid state hydrogen storage is evolving slowly, compounded by a global recalibration of climate targets following recent geopolitical shifts such as the US election. In response, GreenHy2 is prudently reassessing its strategy to identify synergistic services with shorter commercial timelines, including potential integration with lithium-ion battery solutions and new licensing agreements for metal hydride and gaseous hydrogen storage technologies. These moves aim to reduce costs by over 30% and leverage emerging suppliers from Europe and China, enhancing competitiveness.

Key Partnerships and Market Engagements

Among the company’s most significant developments is Telstra’s $1.5 million commitment to a trial of a fully redundant dual hydrogen storage system for telecommunications infrastructure. This project, supported by a matching grant from the Telecommunications Demand Response Innovation Program (TDRIP), seeks to replace diesel power at mobile and fibre optic repeater stations, a critical step toward greener telecom networks.

GreenHy2 also reported a successful 12-month performance trial with Essential Energy, achieving 100% availability, reliability, and renewable fraction year-round. This success opens the door to expanding the project to a 10-unit deployment, with further proposals under consideration for Indigenous communities currently reliant on diesel power.

In the Pacific region, GreenHy2 is actively engaged with Fiji’s Ministry of Energy and the Fiji Rural Electrification Program (FREF), targeting diesel replacement in remote villages and islands. Despite some hesitancy around lithium-ion battery projects due to safety concerns, GreenHy2’s hydrogen solutions are gaining traction, supported by potential funding from international bodies including the EU, AusAid, USAid, and the Asian Development Bank.

Outlook and Strategic Considerations

GreenHy2’s management is navigating a complex market environment marked by evolving climate policies and competitive pressures. The company’s efforts to diversify technology offerings and secure foundational customers, such as Horizon Power’s microgrid program, position it well to capitalize on a potential $20 billion market opportunity in stand-alone power supplies. Additionally, discussions with the Western Australian government about establishing a manufacturing facility could further anchor GreenHy2’s growth trajectory.

While the company’s cash position remains modest, its strategic partnerships and project pipeline suggest a cautious but optimistic outlook. The next quarters will be critical in demonstrating commercial scalability and securing further funding to accelerate deployment.