Sydney, NSW–Patriot Hydrogen (proposed to be owned 20% by Prominence Energy (PRM: ASX) subject to PRM Shareholder Approval and Due Diligence by PRM) has signed a second binding agreement for the supply of its Patriot P2H Hydrogen Units.
Sweetman Renewables Limited will purchase 1 P2H Unit initially with plans to increase that to 15 over the next two years.
The P2H Units are designed to supply green renewable hydrogen to domestic markets. Sweetman plans to use the green hydrogen-rich syngas to drive a purpose-designed generator to power the Sweetman Sawmill operations.
The P2H Unit will have an initial green hydrogen production target of 1 tonne per day, with an anticipated scale-up in production within the next 3 years.
The output of a single P2H Unit driving a local generator will produce approximately 750kWh of dispatchable power, enough to nearly full power the whole Sweetman plant, significantly lowering operational costs and alleviating the need for the company to solely rely on power from the grid.
This is an advantage in remote locations or wherever companies can utilize locally derived biomass waste to produce their own power and lower their reliance on the grid for power.
At an average cost price of $2.9M per unit excluding technology license fees, the P2H units are economically viable for businesses to benefit from the hydrogen production and energy revolution.
What is unique about the Patriot Hydrogen P2H unit, is it will utilize waste and biomass to produce hydrogen or syngas as a fuel to power an engine-driven generator set to deliver baseload electricity in regional locations. In addition, the whole plant can be relocated to different operational sites, making it very suitable for mining and agricultural operations.
Patriot Hydrogen P2H Units uniquely offer a “decentralized approach” to hydrogen production, providing smaller, agile hydrogen to power P2H production units, rather than needing to build multi-billion-dollar, major fixed asset, hydrogen production facilities.
This new technology uses pyrolysis to convert waste materials into a gas (hydrogen-rich syngas or pyrolysis gas) and carbon biochar.
The gas can be used a variety of ways including fuel for a thermal oxidizer to produce steam, for heat or for combined heat and electricity, or to fuel internal combustion technology to produce electricity. The hydrogen-rich gas can be further processed to recover just the hydrogen for domestic and export sales.
Biochar is a valuable secondary product from this process, as it can be sold and used for various industrial or agricultural applications.
Massive demand for renewable hydrogen
Major economies around the world are rapidly shifting to renewable energy sources as they strive to meet their zero-emissions targets.
The growing demand for hydrogen in particular is evident with global oil majors like BP and Woodside announcing their hydrogen aspirations.
The Australian Renewable Energy Agency estimates the global demand for hydrogen exported from Australia could be over 3 million tonnes each year by 2040, which could be worth up to $10 billion annually to the economy by that time.
This makes it a major focus for Australia, with the CSIRO releasing a National Hydrogen Roadmap and the Australian government putting in place its National Hydrogen Strategy.
Source: Patriot Hydrogen