Lion Energy Limited (“Lion” or “Company”; ASX: LIO) welcomes the recent announcement by the Australian federal government to boost the federal investment under the Clean Hydrogen Industrial Hubs program.
Highlights:
- Set against a backdrop of Australian low emission goals and further government support for the hydrogen industry, Lion is positioning itself to be an early mover in green hydrogen production in Australia.
- Based on ongoing analysis of the hydrogen value chain potential, Lion is initially focusing its strategy on a decentralised, low capital intensive and shorter lead time part of the green hydrogen chain. That is, green hydrogen and refuelling infrastructure attached to the national energy market for the domestic heavy mobility market (buses and trucks).
- With the objective to deliver green hydrogen at the pump at a price close to diesel price parity outlined by our studies, Lion is evaluating the potential for building a network of modular hydrogen production and refuelling stations across Australia, with an initial focus on Queensland.
- In parallel to further technical work undertaken with GPA Engineering (“GPA”), Lion is currently undertaking preliminary discussions on the supply of green hydrogen to fleet operators and public agencies in Australia, with a focus on Queensland, intended to lead to the identification of the location for the first hydrogen production and refuelling station by year-end.
- Lion is aiming to be at the forefront of producing and delivering hydrogen to meet the impending demand from bus fleet operators and will update investors on investment scope and scale in due course.
Mr Tom Soulsby, Lion’s Executive Chairman, said We are very pleased by the government’s response to the opportunity that hydrogen represents for Australia.
“These announcements demonstrate that hydrogen is increasingly viewed as an essential component of a de-carbonized world and reinforces Lion’s decision to investigate becoming an early domestic producer and distributor of green hydrogen as outlined in our earlier market releases”.
Following extensive and ongoing market analysis and interaction with market participants and public departments, Lion is focusing its initial efforts on the production and delivery of green hydrogen for the domestic heavy mobility market. We are close to completing the stage 2 work of our hydrogen strategy within budget as outlined in in an announcement entitled “Embracing the energy market disruptor: green hydrogen”.
Lion Energy Limited (“Lion” or “Company”; ASX: LIO) welcomes the recent announcement by the Australian federal government to boost the federal investment under the Clean Hydrogen Industrial Hubs program.
Mr Tom Soulsby, Lion’s Executive Chairman, said “we are very pleased by the government’s response to the opportunity that hydrogen represents for Australia. These announcements demonstrate that hydrogen is increasingly viewed as an essential component of a de-carbonized world and reinforces Lion’s decision to investigate becoming an early domestic producer and
distributor of green hydrogen as outlined in our earlier market releases”.
Lion is also working with the Australian Road Research Board (“ARRB”) on a business case for hydrogen buses in Queensland. ARRB will deliver an economic case and a transition plan, and this will be provided by Lion with the co-operation of regulators, bus fleet owners and operators to assist with their decision making and transition planning.
Mr Soulsby said, “we are very encouraged by our results so far. Our production concepts, and market approaches are well advanced. We have already identified a handful of potential locations, and we are focussing on the selection of the first site. We believe that our work in green hydrogen is well timed with zero net emission targets being adopted by the
Queensland State Government and our work is extremely well received.”
Mr Soulsby went further to explain that “Lion’s work with QUT, which was announced June 2, 2021, is close to completion. The draft geospatial tool enables us quickly to ascertain the suitability of larger hydrogen production locations factoring in market and renewable energy delivery infrastructure.”
“We will update the market on this work upon completion, expected by year end. Our work with Wagner Corporation also continues with discussions ongoing.”
Separately, Mr Soulsby, Lion’s Executive Chairman, has been appointed as a board advisor to the Hydrogen Queensland Industry Group (H2Q), which is an industry led organisation committed to securing the economic, environmental and social opportunities hydrogen offers Queensland and Australia. For more information on H2Q, please see h2q.com.au.
The Company cautions that there can be no certainty that a suitable hydrogen opportunity will be identified as a result of this work. Further, there can be no certainty that any conditions precedent to progressing such an opportunity (including, without limitation, compliance with ASX Listing Rules 11.1.2 and/or 11.1.3 to the extent applicable) will be satisfied.
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