Shares in hydrogen aspirant Lion Energy rise off back of MoU with Wagner
Link copied to
Lion Energy (ASX:LIO) shares jumped today after revealing it might be about to partner up with property and infrastructure manager Wagner as part of its hydrogen ambitions.
The small cap energy stock announced a Memorandum of Understanding (MoU) with Wagner Corporation (not to be confused with the ASX-listed construction company Wagners (ASX:WGN)) to look at developing green hydrogen facilities and related infrastructure at Wagner’s Wellcamp Business Park and Pinkenba Wharf locations in South East Queensland.
While an MoU in any industry is non-binding (no guarantee a binding deal would eventuate), the hype around the hydrogen industry was strong enough to send Lion shares up over 15 per cent today.
The news came only six weeks after Lion first announced its hydrogen ambitions and shares begun to take off.
Speaking in the days after Lion’s first steps, Lion’s boss Tom Soulsby went so far as to say it would have been irresponsible not to consider hydrogen.
This afternoon, we caught up with Soulsby again and he said this was another step in the journey.
“I think what’s key for us is to get on the juncture of renewable energy resources and water – to have access to markets and then to be able to apply technology and effectively build that in,” he said.
“I think Toowoomba and Brisbane are pretty key strategic areas for [hydrogen in] Queensland and that’s part of the rationale of potentially dealing with Wagner.
“We’re excited that we have an opportunity to pursue opportunities with a group like that and we feel honoured that they’re potentially willing to work with us in that space.
“As to how that plays out, we’re not sure but there’s going to be a set of conversations that hopefully lead to [a] priority project list.”