Pure Hydrogen secures land for south-east Queensland hydrogen hub

Pure Hydrogen’s strategy of establishing hydrogen hubs across Australia has taken a key step forward with the securing of an option to acquire land at Bracalba, in Queensland’s Moreton Bay district.

The company intends to establish emerald hydrogen manufacturing and distribution facilities at the 21 hectare site, which will serve customers across Queensland’s southeast region from the Sunshine Coast to the Gold Coast.

Emerald hydrogen uses waste woody biomass source from nearby logging operations that would otherwise end up as landfill and converts it into clean hydrogen using gasification technology developed by joint venture partner CAC-H2. The process also produces biochar and wood vinegar as valuable by-products.

Pure Hydrogen (ASX:PH2) intends to bring the first plant online from the beginning of 2024, which will have initial daily production of 500kg of hydrogen and potential to scale-up to 2,500kg per day.

The site can also accommodate additional plants as needed.

pure hydrogen asx:ph2 moreton bay — Pic: Supplied

“We are very excited to have secured this site in Bracalba, which is an ideal fit location-wise with our broader joint venture strategy to establish east coast hydrogen hubs providing clean hydrogen to growing markets,” managing director Scott Brown said.

“The JV plans at the site reaffirm the commitment of both Pure Hydrogen and CAC-H2 to establish as leaders in the fast-growing hydrogen industry towards Australia’s clean energy transition.

“We look forward to working with CAC-H2 and local regulators to expedite construction and development of the first plant by the end of CY2023 with it being operational from the start of 2024.”

Land for hydrogen hub

Under the option for the Bracalba land, the company has paid $125,000 as an option feed and the right to transfer a further $1,875,000 to complete the purchase within 12 months.

As part of this, partner CAC-H2 will lease 1.5 hectares for $55,000 per annum plus CPI.

Pure Hydrogen will fund the storage and load-out for hydrogen production separately.

It has forecast a spend of $5m for its share of the plant development costs, which it expects to fund out of existing cash reserves and look to bring in a partner for the land acquisition.

This marks Phase 1 of a three-phase rollout with plans for additional plants in New South Wales and Victoria.