Business Update

Business Update

Released : 18.01.2024

18 January 2024

Hydrogen Future Industries plc

("HFI" or the "Company")

Business Update

Hydrogen Future Industries plc (AQSE: HFI), a developer of a proprietary green hydrogen production system featuring an advanced aerodynamic wind turbine and a high-performance electrolyser, is pleased to provide the following update on recent activities.

Mining sector Feasibility Study

HFI has commenced its first mining sector feasibility study (the "FS"), which is being undertaken in collaboration with a mining major on a working mine site in the USA. The mine site operations involve the treatment of mine tailings and associated water. The purpose of the FS is to demonstrate the use of HFI's system to utilise wastewater from tailings as a feedstock to generate clean energy and clean water as a by-product for on-site mining operations. The first stage of the FS is underway and includes data collection from HFI's prototype wind turbine in Montana and the sharing of mine site processing samples.

MoU signed with Australian renewable energy microgrid partner

Considering Australia's ambitions to become a global hydrogen leader, the country has been identified by HFI as a target market for the initial deployment of its patented green hydrogen production system. A Memorandum of Understanding ("MoU") has been signed with Capricorn Clean Energy Limited to facilitate the identification of local project and partnering opportunities, particularly those related to the Australian Renewable Energy Agency's ("ARENA") Regional Microgrids Programme ("RMP") established in August 2023 to support the development and deployment of renewable energy microgrids. ARENA has committed up to A$125 million in funding toward the RMP, which is split into two streams as follows: A) Regional Australia Microgrid Pilots; and B) First Nations Community Microgrids.

HFI's Board believes the Company's energy system is uniquely placed to economically provide on-demand green energy through microgrids across Australia.

Technology development update

Data collection continues on the Company's 1 metre prototype wind turbine in Montana. Remote measuring equipment is being installed to collect data during the more extreme winter months. Data collected to date have been consistent with those collected in the 15,000 hours of computational fluid dynamics ("CFD") and wind tunnel testing and suggests an increase in energy production of upwards of 270% compared to open rotor wind turbines. These data will be independently analysed and fed into the mining sector FS described above.

Plenary sessions are underway with the University of Bristol ("UoB") for the next phase of the HFI electrolyser development announced on 7 December 2023. It is anticipated that the electrolyser will be utilised in conjunction with the deployment of the Hydrogen Depleted Uranium Storage ("HyDUS") project, a collaboration between the UoB, EDF UK (lead partner), Urenco, and the UK Atomic Energy Authority (UKAEA). Learnings from the UoB collaboration will be included in ongoing electrolyser patent submissions by HFI.

The Company is focusing its resources on turbine and electrolyser development, and securing near-term commercial opportunities, prior to progressing other elements of the system such as the Smart Hydraulic Drive and Dynamic Tower.

Update on Tower Group Investment

Further to the Company's investment for a 20% stake in Tower Green Holdings Limited ("Tower") announced on 16 January 2023, HFI is pleased to report that Tower has made significant progress in building its position as the hydrogen infrastructure developer for Southwest England[LL1]. Tower attracted widespread media coverage for its Appledore project, which seeks to develop onshore hydrogen production and refuelling infrastructure in north Devon and supply offshore wind support vessels. Tower will continue to develop these proposals throughout 2024 and its position as the provider of maritime hydrogen refuelling projects in support of offshore wind and other clean maritime operations in the region.

Tower has also built a pipeline of other infrastructure projects throughout the southwest, including a road mobility project in Devon, with real estate and partnerships secured to supply hydrogen directly to industrial off-takers and to the strategic road network. Further project announcements are expected to be made throughout the year.[LL2]

Tim Blake, CEO, HFI Energy Systems, commented:

"With the mining sector accounting for 10% of global energy and 80% of electricity consumption[JW3][TB4], the FS provides an initial step towards the commercial opportunity to produce energy from wastewater onsite which is vast.

"Billions of litres of wastewater are created every day from industrial locations such as mine sites which require treatment before release. Mines are typically remote and require huge energy resources to sustain operations. The opportunity is for HFI's wind hydrogen production system to solve both problems. We are excited to be collaborating with one of the world's largest and most forward-thinking miners to undertake a feasibility study."

"Our technology development team has exceeded expectations in the delivery of sector-leading technologies. With our prototype wind turbine testing supporting energy gains of over 270% compared to open rotor configurations and early-stage electrolyser tests running at 97.1% efficiency, we have a lot to be excited about. Delivery of the mining feasibility study and our collaboration with the University of Bristol will be a key focus for 2024."

Daniel Maling, Executive Director of HFI, commented:

"The global mining sector represents one of the biggest end markets for HFI's energy system due to its high energy requirements and significant wastewater generation. We are excited to be collaborating with one of the world's largest and most forward-thinking [LL5][TB6]miners to undertake a Feasibility Study."

"We are also delighted to be expanding our geographical focus to Australia. The Australian Government's approach to supporting technology-led solutions for the future energy mix is welcomed. The opportunity to apply elements of our patented technology to service microgrid project opportunities and grant funding is compelling."

Enquiries:

Hydrogen Future Industries plc
Daniel Maling, Executive Director	+44 (0)20 3475 6834

Vigo Consulting (Investor Relations)
Ben Simons	+44 (0) 20 7390 0230
Peter Jacob

Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti Liam Murray	+44 (0) 20 72130 880

Peterhouse Capital Limited (Broker)
Duncan Vasey	+44 (0) 20 7469 0930

Inside Information

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company accept responsibility for the contents of this announcement.

About Hydrogen Future Industries

Hydrogen Future Industries was established to invest in projects and companies focused on the Hydrogen Economy. We are developing a proprietary wind-based hydrogen production system, featuring an advanced aerodynamic wind turbine and a high-performance electrolyser. Through this technology, we aim to significantly reduce the cost of hydrogen production from renewable sources and provide on-demand energy storage in the form of hydrogen at a fraction of the cost of lithium-ion battery storage. Click here for more information about Hydrogen Future Industries.

Visit our website: www.hydrogenfutureindustries.com

LinkedIn: @Hydrogen Future Industries

Twitter: @HydrogenFI

Caution Regarding Forward Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.