Blue Energy Limited (ASX: “BLU”) is pleased to announce that it has executed a non-binding Memorandum of Understanding (MOU) with Stanmore Resources Limited ((Stanmore) previously known as Stanmore Coal – ASX: “SMR”) to supply hydrogen from its future pilot production activities in its ATP 814 tenement in the Bowen Basin.
This latest agreement comes after Blue Energy and Stanmore previously announced a non-binding MOU for the commercialization of mine gas from Stanmore’s proposed underground operation adjacent to ATP814.
Blue is investigating the potential for conversion of pre-development gas production, from pilot gas well operations to hydrogen for supply to Stanmore’s Isaac Plains Complex equipment fleet. The gas used by Blue for conversion to hydrogen will be pilot gas which would otherwise be flared, and this trial project will reduce greenhouse gas emissions from Blues activities and also reduce diesel fuel usage by Stanmore which in turn reduces the CO2 produced by the combustion cycle of their fleet of vehicles.
Blue is currently investigating off-the-shelf modular hydrogen generation equipment that is portable and able to be installed either centrally or at the wellhead, with the hydrogen generated transported in purpose-built cylinders to Stanmore’s Isaac Plains Complex site for use in their vehicle fleet.
Blue Energy’s Managing Director Mr John Phillips commented that “being able to avoid flaring of pilot gas production by converting it to hydrogen is a step forward in reducing emissions prior to gas developments, and in this case has the added bonus of also lowering emissions from neighboring mining operations”.
Blue is in the process of establishing technology partners for this hydrogen trial, and now with a foundation hydrogen offtaker secured is confident the use of Blue Hydrogen from our predevelopment activities is a positive step toward lowering the greenhouse gas emission footprint of the Bowen Basin Coal mining precinct.