Verdant Earth Technologies eyes strategic green hydrogen alliance with Australia’s closest port to Asia
Verdant Earth Technologies is heading down the path towards a strategic green hydrogen alliance with the Port of Darwin – Australia’s ‘northern gateway’ for Australasian trade.
Verdant Earth Technologies, which plans to establish itself as one of Australia’s largest green hydrogen brokers, producers and exporters, has inked a term sheet with Darwin Port Operations.
The pair will investigate several ways to turn Darwin Port into a major green hydrogen hub. Verdant CEO Richard Poole on the partnership:
“A strategic alliance with Darwin Port would pave the way for the establishment of a green hydrogen hub at Australia’s nearest port to Asia and the country’s ‘northern gateway’ for Australasian trade.”
Sydney based Verdant wants to build a “world class” hydrogen production facility using sustainable power such as wind and solar to produce green power and green hydrogen for the domestic market and export to Asia.
Green hydrogen is produced using renewable green energy, meaning it produces no CO2 emissions compared to other types of hydrogen production.
But right now, over 99 per cent of hydrogen produced is made using fossil fuels, and governments around the world are working rapidly to change this as they come under increasing pressure to meet their net zero emissions targets.
Darwin was most recently singled out by the Australian government as the ideal location for a future clean hydrogen hub, which will receive over $275m in government cash to make it a reality.
Darwin is among four regional centres the Morrison government wants to share in the funding, which is part of a Federal Budget initiative that will see $539.2m in new clean hydrogen, carbon capture, use and storage (CCS/CCUS) projects built. Richard Poole on government funding:
“Hydrogen continues to attract greater support from the Australian government, with the recent Federal Budget commitment of a further $1.6 billion to fund priority technologies, including clean hydrogen.”
The Northern Territory capital city is also where the proposed green energy Australia-ASEAN Power Link (AAPL) is being built. The AAPL will harness and store solar energy for 24/7 transmission to Darwin and Singapore via a high voltage direct current (HVDC) transmission system.
It will be capable of supplying up to 20 per cent of Singapore’s total electricity needs using green energy, with supply scheduled to begin in 2027.
Verdant’s proposed alliance with Darwin Port Operations is part of the company’s strategy to establish 10 sustainable hydrogen production facilities across Australia that produce green energy for domestic supply and export. This is aligned with the organisations wider goal as ourlined by CEO Richard Poole
“Verdant Earth Technologies is working to help establish Australia as a major green hydrogen producer and exporter.
Hydrogen production is set to begin in late 2022 or early 2023 at an initial rate of 6 tonnes per day, followed by a significant scale up in 2024.
This article was developed in collaboration with Verdant Earth Technologies, 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.