Patriot to supply first portable hydrogen production units to Port Anthony Renewables
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Patriot Hydrogen has locked in its very first deal to supply its revolutionary, portable “P2H” units for hydrogen and power production to Port Anthony Renewables.
While traditionally hydrogen production requires the construction of multi-billion-dollar facilities, Patriot is turning the industry on its head with portable Patriot branded P2H units that make hydrogen production possible in more remote locations.
Patriot, which is proposed to be 20 per cent owned by ASX-listed Prominence Energy (ASX:PRM) subject to PRM shareholder approval and due diligence by PRM, has the exclusive Australian licence for a scalable containerised hydrogen production system capable of delivering compressed hydrogen and biochar in Australia by late 2021/early 2022.
The company has received its very first order from Port Anthony Renewables, which wants to install two of these units to start with at Port Anthony, 180km southeast of Melbourne in Victoria, to supply green hydrogen to the domestic and international markets.
The P2H units will have an initial production target of 1 tonne per day of hydrogen per unit, with an anticipated scale up in production within the next three years.
Green hydrogen is produced using renewable energy, meaning it produces no CO2 emissions compared to other types of hydrogen production.
Patriot’s P2H units are unique in that they will utilise waste and biomass to produce the hydrogen.
The biomass being used is waste wood left behind by timber mills because it is not suitable or has defects as well as other wood that ends up in landfill.
The modular hydrogen units are scalable and can operate on multiple different feedstocks enabling them to be deployed over a range of different industries.
The technology uses pyrolysis to convert waste materials into two high-value gases – hydrogen-rich gas or pyrolysis gas.
The gas can be used a variety of ways including to fuel a thermal oxidiser for the production of steam, for heat or for combined heat and electricity, or to fuel internal combustion technology for the production of combined heat and electricity.
The hydrogen-rich gas can be further processed to recover the hydrogen for domestic and export sales.
A secondary product from this process is biochar, which can be sold and used for various industrial or agricultural applications and can fetch as much as $600 a tonne depending on volume.
Patriot says at an average cost of $2.9m per unit, excluding technology licence fees, the P2H units are economically viable for businesses to enter the hydrogen production and energy revolution.
The Australian Renewable Energy Agency estimates global demand for hydrogen exported from Australia could be over 3 million tonnes each year by 2040, which could be worth up to $10bn annually to the economy by that time.
The Australian government has promised hundreds of millions of dollars to help grow the country’s hydrogen industry, which is just starting to take off.
Meanwhile, a new study commissioned by the Clean Energy Finance Corporation (CEFC) has concluded that green hydrogen will be commercially viable by 2030.
The study found that green hydrogen was already very close to cost competitive in the heavy vehicle industry for use in trucks and buses.
Indicating just how much of a focus hydrogen is becoming globally, a rising number of oil and gas players are getting into the game. At the end of May Prominence Energy revealed it had signed a binding term sheet to acquire a 20 per cent stake in Patriot Hydrogen as part of a diversification strategy.
This article was developed in collaboration with Patriot Hydrogen, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.