Green Energy: QEM riding like the wind on PFS update at Julia Creek
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Shares in green hydrogen proponent QEM soared this morning on news wind energy would be a “viable” power source for green hydrogen production at its Julia Creek vanadium and oil shale project in Queensland.
Based on an assessment completed by DNV as part of a pre-feasibility study, investigations are also underway about the potential for solar energy to be a part of the mix.
A preliminary layout of the proposed wind farm would have 126MW of generating capacity powered by 21 wind turbines.
On top of using the power to produce “green hydrogen” QEM also believes it could supply power into the proposed $1.5 billion Copperstring 2.0 high voltage transmission line.
That project is a 1000km line which would service Townsville and mines in North West Queensland, which will run around 10km from Julia Creek.
QEM has also presented headline figures from an internal market report produced by consultants Siecap, which predicts demand from Asia will back a hydrogen export industry in Australia worth $2.6 billion in 2030.
That would precede a predicted 750% increase in demand for the new-age energy fuel by 2050 to a $12 trillion global market, pretty much in line with headline making estimates last year from Goldman Sachs.
These things of course are hard to predict, but QEM is predictably bullish on the outlook.
“The results of the wind farm stage of the study brings QEM another step closer to becoming a pioneering Queensland producer of green hydrogen,” QEM Gavin Loyden said.
“The hydrogen market report independently produced by Siecap further reinforces that our path towards green hydrogen, commencing with investment in on-site renewable energy generation, is the optimal one to deliver long-term value for QEM.”
“This is further supported by QEM’s potential to become a supplier of green energy into the proposed $1.5 Billion Copperstring 2.0 high voltage transmission line development, adjacent to our Julia Creek Project.”
QEM’s share price is up around 130% over the past six months, with virtually all of that advance taking place since it announced its green hydrogen strategy in March.