The studies will investigate the financial and regulatory requirements of the company to produce hydrogen on site at Julia Creek using a “green” solar-powered electrolyser.
It is envisaged that the hydrogen would initially be used as a support to the energy needs of other resources projects located in the North West Minerals Province of Queensland, but ultimately for the hydrogeneration of the company’s raw oil into transport fuels.
To assist in its assessment of capital and operating costs, the company has appointed E2C Advisory Pty Ltd. E2C previously assisted the company with the review of a processing technology utilising a hydrocarbon solution for oil shale extraction (refer to ASX announcement dated 14 April 2020) and have extensive experience in electrolysers used for hydrogen production.
QEM will commence proactive discussions with the Queensland state government on progressing the approval process to access water resources for the potential development. The company will focus on securing the relevant approvals following the successful completion of the financial studies to be conducted by E2C.
QEM managing director Gavin Loyden said the company was delighted to be working with experts who possess substantial expertise in the hydrogen field.
“The commissioning of these studies will lay the groundwork to advance our green hydrogen strategy at Julia Creek, amid increasingly buoyant market conditions and the project’s optimal location and resource profile to produce hydrogen on-site,” Loyden said.
“For example, the Queensland state government established a ministry for hydrogen in November 2020, as the State Government seeks to encourage investment into the bourgeoning market.
“Crucially, the hydrogen strategy aligns with the broader strategic direction of Julia Creek, as QEM looks to target both the liquid fuels and renewable energy sectors.
“We remain committed to continuing the development of Julia Creek to unlock the substantial latent value
the vanadium and oil shale project possesses.”
The Julia Creek Project currently contains a globally significant JORC (2012) Vanadium Resource of 2,760Mt (220 Mt Indicated and 2,540 Mt Inferred) with an average V2O5 content of 0.30%, and a 3C Contingent Oil Resource of 783 MMbbls of Oil (refer to ASX announcement dated 14 October 2019)