HyTerra Advances Nemaha Project and US Air Force Hydrogen Initiative

Nemaha Project Moves to Appraisal Phase with McCoy-1 Test

HyTerra Ltd (ASX:HYT) is gearing up for a pivotal production test at its McCoy-1 well in Kansas, slated for Q2 2026. This test aims to evaluate hydrogen and helium flow characteristics and concentrations, a crucial step beyond early exploration toward commercial appraisal. Detailed test design is complete and equipment procurement is underway, reflecting the company’s disciplined approach to validating reservoir behaviour and sustainable flow rates. The McCoy-1 well, HyTerra’s deepest drilled to date, sits within the Nemaha Ridge, an area known for historic hydrogen occurrences reaching up to 92% hydrogen and 3% helium in prior wells.

Laboratory experiments at the University of Colorado Boulder are concurrently assessing the hydrogen generative potential of McCoy-1 rock samples, supporting HyTerra’s broader understanding of prospective source settings. This technical groundwork is expected to inform future drilling and appraisal decisions across the company’s extensive lease holdings.

US Collaboration and Commercialisation Pathways

In February, HyTerra inked a collaboration agreement with Prometheus Hydrogen to conduct a joint demonstration of end-to-end geologic hydrogen production, purification, storage, transport, and delivery within the continental United States. The demonstration targets completion by December 2026 and could pave the way for commercial-scale hydrogen supply, particularly to government and defence sectors. This partnership aligns with HyTerra’s strategy to build a robust commercialisation pathway in the US market, leveraging existing infrastructure and regulatory support.

Further cementing its role in the US hydrogen landscape, HyTerra was recently selected as a primary performer in the Renaissance Philanthropy’s Chimaera Fund initiative. This project supports the United States Air Force’s goal of achieving 99.9% energy availability at critical bases by 2030 through geologic hydrogen. HyTerra’s involvement underscores its growing technical credibility and practical experience in the sector, contributing to energy resilience efforts at a national security level.

Expanding Global Footprint with Oman Partnership

On the international front, HyTerra signed a Memorandum of Understanding with ARA Natural Resources LLC in March to jointly explore geologic hydrogen opportunities in Oman’s Semail Ophiolite region. This formation is regarded as one of the world’s most prospective geologic hydrogen settings. The MoU combines ARA’s local operational expertise with HyTerra’s exploration and appraisal capabilities, positioning the company as an early mover in a promising emerging market. This strategic move complements HyTerra’s broader global growth ambitions and diversifies its portfolio beyond the US.

Funding and Financial Position

To support its ambitious testing, drilling, and growth plans, HyTerra launched an entitlement offer in April aiming to raise up to A$7 million at $0.014 per share. The offer, which includes a shortfall facility, is open to existing shareholders and is critical to funding the upcoming McCoy-1 production test and other exploration activities. At the end of March 2026, the company held A$1.27 million in cash, underscoring the importance of this capital raise to sustain momentum in its development programs.

HyTerra’s strategic initiatives are unfolding amid a backdrop of growing interest in geologic hydrogen as a low-carbon energy source, with the company actively building its profile through presentations such as the Hydrogen Innovation Workshop in Tokyo. The company’s approach balances technical rigour with commercial pragmatism, aiming to unlock value from its Nemaha Project while positioning itself in new jurisdictions like Oman. The upcoming McCoy-1 test results and progress in the US Air Force demonstration will be critical milestones to watch in the coming months.

HyTerra’s recent capital raise effort builds on momentum from the company’s $7 million entitlement offer, while its partnership with ARA in Oman reflects the strategic expansion detailed in the HyTerra and ARA Forge Exclusive Pact. The US collaboration with Prometheus Hydrogen further underscores the company’s integrated approach to commercialising geologic hydrogen domestically, as outlined in the HyTerra and Prometheus Hydrogen Unite announcement.