Perth-based oil and gas company Lion Energy (ASX: LIO) has signed an agreement with Australian real estate group Wagner Corporation Pty Ltd to explore opportunities related to the development of green hydrogen facilities in the Wellcamp business park of Queensland and Pinkenba Wharf.
The agreement will allow companies to consider collaborating on potential developments.
It follows a service agreement reached with the Queensland University of Technology earlier this week, under which the university will help Lion apply its myGlobe software tool to optimize the location of a potential green hydrogen infrastructure. using geospatial data visualization.
Both deals are part of Lion’s green hydrogen strategy announced in April, which he hopes will position it “at the critical point” of resources, markets and technology.
As part of this strategy, it established a Hydrogen Advisory Board and appointed experts to systematically analyze the optimal locations and technologies for electrolyzers in Australia.
Executive Chairman Tom Soulsby said the opportunity for green hydrogen is “so great” that it would be a mistake not to seriously consider the opportunities.
“While hydrogen is still in its infancy, volumes and revenues are expected to grow exponentially over the next decade,” he said.
“Our 2021 orientation offers Lion a path to participate in the emerging low-carbon energy transition. “
Storage and decarbonisation
Green hydrogen – made from renewable energy – is a clean-burning fuel that can be used for long-term energy storage and to help decarbonise transportation, heating, and industrial processes such as manufacturing. steel and cement.
It is produced by electrolysis from sources such as solar, wind or tidal power and has been touted as the “holy grail” of renewable options because it is virtually emission-free and capable of reducing around 34% of greenhouse gases. greenhouse from fossil fuels and industry. at a manageable cost.
Green hydrogen can help achieve net zero carbon dioxide emissions in energy-intensive sectors such as chemicals, long-haul transport, shipping and aviation, but production costs are currently too high to make it an economical option for all countries.
The increasing scale of solar and wind power is expected to gradually lower the costs of green hydrogen, which in turn will speed up commercialization.
Mr Soulsby said Australia could be a forerunner in the hydrogen green space.
“Critically, Australia has a comparative advantage in renewables,” he said.
“Our position in abundant renewable resources [us] become one of the cheapest green hydrogen producers, especially for the Asian market.