New Report from KBR Supports Potential for US$1.75/kg Hydrogen from Syntholene's Geothermal-SOEC Platform

Rhea-AI Summary

KBR (NYSE: KBR) completed an independent technical and economic review of Syntholene's geothermal‑integrated SOEC hydrogen platform, modeling levelized hydrogen costs of about US$1.75/kg in best‑case Iceland scenarios and US$2.10/kg under broader deployment.

The study benchmarks these costs against higher recent European green and fossil hydrogen estimates and outlines key assumptions, potential technical advantages, and project risks.

Positive

• Modeled LCOH about US$1.75/kg in Iceland geothermal scenario
• Modeled broad‑deployment LCOH about US$2.10/kg hydrogen
• Target hydrogen cost below recent European fossil SMR benchmark
• Integration of geothermal heat and power may reduce electrical intensity
• Demonstration facility expected to provide key operating performance data

Negative

• LCOH findings based on modelling, not commercial operating data
• Economics assume advantaged geothermal access and successful thermal integration
• Risks include electricity price variability and SOEC degradation over time
• Project‑specific capital and operating costs still require validation

News Market Reaction – KBR

-1.24%

-1.24% Session close to close

In the Jul 9 session, KBR declined 1.24%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

KBR’s role as independent reviewer of Syntholene’s geothermal-SOEC platform, highlighting potential ...

Analysis

KBR’s role as independent reviewer of Syntholene’s geothermal-SOEC platform, highlighting potential US$1.75/kg hydrogen, extends its positioning in sustainable fuels advisory. Investors may weigh modeled assumptions and technology risks against recent contract wins and net insider buying when assessing strategic impact.

Key Figures

LCOH best-case: US$1.75/kg H2 LCOH broad deployment: US$2.10/kg H2 Green hydrogen Europe: €6.71/kg H2 +5 more

8 metrics

LCOH best-case US$1.75/kg H2 KBR-reviewed Syntholene LCOH under best-case Iceland geothermal scenario

LCOH broad deployment US$2.10/kg H2 KBR-reviewed Syntholene LCOH under broader deployment assumptions

Green hydrogen Europe €6.71/kg H2 Recent unsubsidized average green hydrogen price in Europe (US$7.66 equivalent)

Fossil SMR benchmark €3.33/kg H2 (US$3.80) Recent regional European benchmark LCOH for unabated SMR hydrogen

SMR with carbon price €4.12/kg H2 (US$4.70) European SMR hydrogen including current carbon price (ETS)

SOEC system size 1200 kW System size used in Syntholene LCOH estimate

Capital expenditures US$1.2 million Capex assumption for 1200 kW configuration in KBR review

Electricity price US$30/MWh Assumed power cost in Syntholene LCOH estimate

Historical Context

5 past events · Latest: Jul 06 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 06	Earnings call scheduling	Neutral	+2.8%	Scheduled second quarter 2026 earnings release and conference call date and time.
Jun 29	SAF technology contract	Positive	+1.0%	PureSAF technology selected for licensing and FEED for Asia’s first commercial SAF plant.
Jun 25	Spin-off leadership appointments	Positive	-2.8%	Named CEO and CFO designates for planned Mission Technology Solutions spin-off business.
Jun 16	Innovation studio launch	Positive	+0.6%	Opened inaugural Innovation Studio in Bengaluru focused on INSITE 3.0 and AI services.
Jun 09	Defense contract award	Positive	-0.3%	$95 million five-year DEEDS contract win supporting U.S. Space Force digital engineering.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent KBR news has produced mixed share reactions, with three events aligning with the headline tone and two showing opposite moves.

Key Terms

solid oxide electrolyzer cells, levelized cost of hydrogen, steam methane reforming, carbon capture, +1 more

5 terms

solid oxide electrolyzer cells technical

"Highlights the Advantages of Syntholene's Geothermally Integrated Solid Oxide Electrolyzer Cells"

Solid oxide electrolyzer cells (SOECs) are high-temperature electrochemical devices that use a solid ceramic membrane to split steam or carbon dioxide into hydrogen (and oxygen) or into carbon monoxide plus hydrogen (syngas) when electricity is applied; they operate like the reverse of a solid oxide fuel cell. They matter to investors because they offer a potentially efficient route to large-scale hydrogen and synthetic-fuel production powered by electricity, where durability, efficiency and manufacturing cost determine commercial value — think of them as industrial electric “ovens” that convert water or CO2 into fuel.

levelized cost of hydrogen financial

"The Report assessed Syntholene's levelized cost of hydrogen ("LCOH") methodology"

A lifetime-average price that estimates how much it will cost to produce one unit of hydrogen (usually per kilogram) from a specific plant or technology, taking into account capital costs, fuel or feedstock, operations and maintenance, financing, capacity factor and plant lifetime. Think of it like the average cost per mile of owning a car over its whole life — it helps compare different ways of producing hydrogen on a consistent basis. Investors use it to judge project economics and how competitive a hydrogen source is versus alternatives, while recognizing the number depends on many assumptions.

steam methane reforming technical

"benchmark for unabated fossil hydrogen produced with traditional Steam Methane Reforming ("SMR")"

Steam methane reforming is an industrial process that uses high-temperature steam and a catalyst to extract hydrogen from methane (natural gas), producing hydrogen along with carbon dioxide as a byproduct. Think of it like steaming juice out of a fruit: the valuable hydrogen is separated from the gas, while carbon emissions remain unless captured. Investors care because this method is a major source of low-cost hydrogen, influences fuel and feedstock costs, and has regulatory and emissions implications that affect project economics and permitting.

carbon capture technical

"increases the cost of SMR with carbon capture to ~€4.12/kg H2"

Carbon capture is the process of removing carbon dioxide (CO2) from industrial emissions or the air and then storing it safely underground or turning it into useful products, like locking smoke from a factory into a sealed container or recycling it into new material. Investors care because the technology can cut a company’s reported emissions, create new revenue streams or credits, and reduce regulatory or climate-related risk, all of which affect future costs and valuations.

binary-cycle-style heat exchange technical

"Mitigation strategies for geothermal silica scaling through indirect fluid handling and binary-cycle-style heat exchange design"

A binary-cycle-style heat exchange is a thermal system that transfers heat from a primary hot fluid into a separate working fluid with a lower boiling point through a heat exchanger, causing the working fluid to vaporize and drive a turbine or heat engine while keeping the two fluids physically separate. It matters to investors because this design allows power generation or industrial heat recovery from moderate-temperature resources with different capital, operating costs, and emissions profiles compared with direct-steam systems; think of it as using a hot pan to boil a kettle of lower-temperature liquid so you can capture otherwise unusable heat.

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Technical Review from KBR Highlights the Advantages of Syntholene's Geothermally Integrated Solid Oxide Electrolyzer Cells for Step Change Reduction in Hydrogen Cost

Chicago, Illinois--(Newsfile Corp. - July 9, 2026) - Syntholene Energy Corp. (TSXV: ESAF) (FSE: 3DD0) (OTCQB: SYNTF) ("Syntholene" or the "Company") announced today an independent technical and economic review evaluating Syntholene's geothermal-integrated hydrogen production platform and its potential application to low-carbon fuels, including synthetic sustainable aviation fuel ("eSAF").

Figure 1. Regional Hydrogen Production Cost Comparison (per kilogram)

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11636/304450_277c20f9c4cbc810_001full.jpg

Kellogg Brown and Root LLC (NYSE: KBR) ("KBR") was engaged by the Company to provide an analysis and opinion of high level technical and cost review of the Company's hydrogen technology that can be applied to eSAF deployments (the "Report"). The Report assessed Syntholene's levelized cost of hydrogen ("LCOH") methodology and conducted sensitivity analysis across key cost variables. KBR concluded that Syntholene's likely LCOH is approximately US$1.75/kg H₂ under best-case Iceland geothermal scenarios and approximately US$2.10/kg H₂ under broad deployment.

Hydrogen is the dominant cost in synthetic aviation fuel production (IEA), and generating it at low cost is central to achieving cost competitive synthetic fuel. Recent unsubsidized estimates of comparable green hydrogen price averages across Europe were ~€$6.71/kg H₂ ($US7.66) (EHO).

Notably, Syntholene's LCOH target is lower than the most recent regionally comparable European benchmark for unabated fossil hydrogen produced with traditional Steam Methane Reforming ("SMR"), of which the European Hydrogen Observatory stated "the levelized production costs of hydrogen by SMR in Europe were, on average, ~€3.33/kg H₂ (US$3.80) of hydrogen. (EHO)" when including the current cost of the European Carbon Price (ETS), this fossil derived Hydrogen benchmark increases the cost of SMR with carbon capture to ~€4.12/kg H₂ (US$4.70).

The review further states that successful operation at Syntholene's demonstration facility in Húsavík, Iceland (the "Demonstration Facility") would provide key operating data related to efficiency, thermal integration, reliability and stack degradation.

The findings in the Report are based on a number of key assumptions using modelling and sensitivity analysis rather than commercial operating data or executed contracts. These assumptions include the Company's access to advantaged geothermal resources and successful thermal integration. In addition, Syntholene's LCOH estimate was based on 1200 kW size with US$1.2 million of capital expenditures, and an assumed electricity price of US$30/MWh. The Report also identifies primary risks, including electricity price variability, long-duration SOEC degradation, stack life assumptions, project-specific capital cost, and operating cost validation.

The Report identified several potential technical and commercial differentiators for Syntholene, including:

• Integration of low-carbon geothermal electricity and thermal energy;
• Reduced electrical intensity through SOEC operation and heat recovery;
• Integration advantages with eSAF configurations, including heat and utility integration;
• Mitigation strategies for geothermal silica scaling through indirect fluid handling and binary-cycle-style heat exchange design; and
• Extension of SOEC stack operating life through dynamic AC:DC operation approach.

"Syntholene's core thesis is that low-cost synthetic fuel production starts with low-cost clean hydrogen, and that the lowest-cost clean hydrogen will come from systems that intelligently use both electricity and heat," said Dan Sutton, Chief Executive Officer of Syntholene. "The report identifies the major cost drivers, validates the importance of our now-operating Húsavík Demonstration Facility, and reinforces why geothermal colocation can be a structural advantage in synthetic fuel production."

KBR was engaged as an independent third-party technical consultant and was paid a fixed fee for its assessment and the preparation for the Report. KBR did not receive any securities of the Company as compensation for its services.

If you are interested in receiving a copy of the Report, please contact the Company at comms@syntholene.com.

About KBR

KBR delivers science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 36,000 people worldwide with customers in more than 85 countries and operations in over 28 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com.

About Syntholene

Syntholene is actively commercializing its novel Hybrid Thermal Production System for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, which the Company seeks to manufacture at 70% lower cost than the nearest competing technology today. The Company's mission is to deliver the world's first truly high-performance, low-cost, and carbon-neutral synthetic fuel at an industrial scale, unlocking the potential to produce clean synthetic fuel at lower cost than fossil fuels, for the first time.

Syntholene operates the world's first geothermally-integrated high temperature electrolysis demonstration facility in Husavik, Iceland.

Founded by experienced operators across advanced energy infrastructure, nuclear technology, low-emissions steel refining, process engineering, and capital markets, Syntholene aims to be the first team to deliver a scalable modular production platform for cost-competitive synthetic fuel, thus accelerating the commercialization of carbon-neutral eFuels across global markets.

For further information, please contact:
Dan Sutton, CEO
comms@syntholene.com
www.syntholene.com
+1 608-305-4835

X: @Syntholene
Linkedin: Syntholene Energy
Youtube: Syntholene Energy

Investor Relations
KIN Communications Inc.
604-684-6730
ESAF@kincommunications.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "aims", "continue", "estimate", "objective", "may", "will", "project", "should", "believe", "plans", "intends", "targets" and similar expressions are intended to identify forward-looking information or statements. All statements, other than statements of historical fact, including but not limited to statements regarding the projections or estimates made in the Report, the Demonstration Facility, testing planned at the Demonstration Facility, including the timing thereof and and the proposed use of data from such testing, commercial scalability, proposed benefits to the project from the skills of the engaged service providers, economic benefits of the Company's products relative to competitive products, the Company's ability to execute on its plans for advancement and commercialization of its technology, technical and economic viability, anticipated geothermal power availability, anticipated benefit of eFuel, and future commercial opportunities, are forward-looking statements.

The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including without limitation the assumption that the Company will be able to execute its business plan in the manner and timeline set forth in its public disclosure or at all, that the Demonstration Facility will operate as expected, that the engaged service providers have the skills to advance the Company's business plans, that the eFuel will have its expected benefits, that there will be market adoption, that the Company's review of the competitive landscape and that its understanding of being the world's first Company to have geothermal-SOEC integration remain accurate, that any potential competitors to the Company would not be able to develop or execute geothermal-SOEC integration as quickly or as well as the Company, that the Company will be able to produce the eFuel at competitive pricing in the range anticipated in this news release and the Report or at all, that the proposed testing will be able to be completed, and that the results from such tests will validate the Company's technology and support further commercialization, that geothermal heat will be available to the Company at the necessary levels, that the Company will continue to have access to skilled personnel with relevant experience, that regulatory requirements remain favourable for the Company, and that the Company will be able to access financing as needed to fund its business plan. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

Actual results could differ materially from those currently anticipated due to a number of factors and risks, including, without limitation, Syntholene's ability to operate the Demonstration Facility and complete the testing, that the results of the testing will support continued commercialization and the Company's technology, that the engaged service providers do not have the necessary skills to and do not advance the Company's business plan, that there are competitors in geothermal-SOEC integration that are unknown to the Company, that the Company may not be able to produce eFuel at the targeted prices or at a price that is lower than potential competitors, that definitive commercial purchase orders for Syntholene's eFuel may not materialize, Syntholene's ability to meet production targets, realize projected economic benefits, overcome technical challenges, secure financing, maintain regulatory compliance, manage geopolitical risks, and successfully negotiate definitive terms. Syntholene does not undertake any obligation to update or revise these forward-looking statements, except as required by applicable securities laws.

This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the cost and pricing of the eFuel product that Syntholene is seeking to commercialize, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of describing the anticipated effects of advancement of Syntholene's business operations. Syntholene's actual results, performance or achievement could differ materially from those expressed in, or implied by, such FOFI. Syntholene disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained herein should not be used for purposes other than for which it is disclosed herein.

Readers are advised to exercise caution and not to place undue reliance on the forward-looking statements and FOFI in this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304450

FAQ

What hydrogen cost did KBR estimate for Syntholene's geothermal-SOEC platform (NYSE: KBR)?

KBR estimated Syntholene’s levelized hydrogen cost at about US$1.75/kg in best-case Iceland geothermal scenarios and around US$2.10/kg for broader deployment. According to Syntholene, these modeled figures depend on specified assumptions rather than commercial operating data or executed contracts.

How does Syntholene's modeled hydrogen cost compare to European green hydrogen benchmarks?

Syntholene’s modeled LCOH is below recent unsubsidized European green hydrogen averages of about €6.71/kg (US$7.66). According to Syntholene, its targets also undercut fossil hydrogen from SMR in Europe, even before including carbon price impacts reported by the European Hydrogen Observatory.

What key assumptions underpin Syntholene's US$1.75/kg hydrogen estimate from the KBR review?

The modeled LCOH assumes a 1,200 kW system, roughly US$1.2 million in capital expenditures, and electricity at US$30/MWh. According to Syntholene, the scenarios also rely on access to advantaged geothermal resources and effective thermal integration with its SOEC technology.

What technical advantages were identified for Syntholene's geothermal-SOEC hydrogen platform for eSAF?

The review highlighted integration of geothermal electricity and heat, reduced electrical intensity via SOEC and heat recovery, and eSAF heat-utility integration. According to Syntholene, additional differentiators include silica-scaling mitigation and approaches intended to extend SOEC stack operating life.

What risks did KBR identify for Syntholene's geothermal-SOEC hydrogen economics?

KBR cited risks around electricity price variability, long-duration SOEC degradation, and assumed stack life, plus project-specific capital and operating costs. According to Syntholene, these risks underline the importance of validating assumptions with data from its operating Husavik demonstration facility.

How does Syntholene's hydrogen platform relate to synthetic sustainable aviation fuel (eSAF) economics?

Hydrogen is described as the dominant cost in synthetic aviation fuel, making low-cost production critical for competitiveness. According to Syntholene, its geothermal-SOEC platform is designed to supply lower-cost clean hydrogen that can support more cost-effective eSAF configurations and integrations.

What role will Syntholene's Husavik demonstration facility play in validating the KBR report assumptions?

The Husavik demonstration facility is expected to generate operating data on efficiency, thermal integration, reliability, and stack degradation. According to Syntholene, this information should help validate or refine the modeled hydrogen cost assumptions used in KBR’s independent technical and economic review.