UBS expects green hydrogen demand to grow and in conversation with management learnt of Origin Energy’s forecast for H2 exports from Australia in the range of 20-35mtpa by 2050.
The company considers it is well placed to compete, given its advantage of proximity to Asia, low geopolitical risk and high capacity for renewables.
Management thinks the main technical challenge for scale H2 production in Australia is the decision surrounding which H2 carrier to utilise for transport to Asia. The Buy rating and $5.15 target are maintained.
Sector: Energy.
Target price is $5.15.Current Price is $5.00. Difference: $0.15 – (brackets indicate current price is over target). If ORG meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
