The Australian arm of Scotland-headquartered Xodus Group said its proposed MercurHy project would allow for the industrial-scale production of green hydrogen, helping to unlock and decarbonise new industries while leveraging economies of scale, particularly regarding the supply and purchase of renewable energy.
The company plans to build the hydrogen production facility in stages with the initial phase to comprise 150 MW of electrolyser capacity. The second stage would increase the capacity of the facility to 500 MW before a third stage is completed for a total electrolyser capacity of 1 GW.
Xodus Managing Director Stephen Swindell said the staged approach will allow the market for green hydrogen time to develop sufficiently and also allow the company to capitalise on future technology price reductions.
“As we accelerate the global transition to a low-carbon economy, the investment landscape is becoming more and more complex as markets, policies and regulations also undergo rapid change,” he said. “Upscaling of the hydrogen sector is still in its infancy and the local supply chains must be developed further to maximise opportunities.
“The aim of this project is to push the supply chain forward, reduce technology risks and achieve cost reductions.”
While no details about the exact location and renewable energy components of the project were made available, Xodus said it has secured the support of local landowners and the state government for the MercurHy project.
The company has also opened talks with potential capital and infrastructure partners to secure equity funding for the project and has already signed a deal to investigate the possible supply of green hydrogen to ASX-listed VRX Silica, a resources company with multiple silica sand projects in WA and plans for the manufacture of ultra-clear glass for solar panels to supply national and international demand.
In a non-binding Memorandum of Understanding signed in March, Xodus agreed to explore the future supply of green hydrogen to VRX’s Arrowsmith North and Muchea silica sand projects in the Mid-West, as well as to potential, nearby glass-manufacturing facilities.
“Project MercurHy provides a strong economic development opportunity for the region by helping to unlock and decarbonise new industries, which in the case of VRX Silica would see the opening up of domestic capacity for local net-zero glass and solar panel manufacturing,” Xodus said.
The deal is exploring a future offtake of between 9,000 tonnes to 11,000 tonnes of green hydrogen per annum.
Xodus said it has also advanced discussions with other potential green hydrogen offtakers.
“It’s an exciting project,” Swindell said. “We have led it from its infancy and have attracted partners to achieve joint success. Our aim is to have an active role in energy transition with the high-quality, low-carbon, economically viable projects that Australia and the world desperately needs.”
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