Australian Vanadium locks in green hydrogen supply
Special Report: Australian Vanadium (ASX:AVL) is going full throttle on its green hydrogen strategy, signing an agreement to buy the gas just two weeks after announcing its plans.
Highlighting how serious it is about tapping into the economic and environmental benefits, the company has signed a memorandum of understanding with ATCO Australia for the supply of green hydrogen.
Green hydrogen is made using an electrolyser powered by renewable energy such as solar and wind to separate hydrogen from water, resulting in a fuel source without any carbon emissions.
Up to 10 per cent hydrogen will be introduced into the gas pipeline for vanadium processing, which could deliver reduced carbon emissions.
The company will also explore other areas of mutual interest with ATCO, which is one of seven proponents shortlisted by the Australian Renewable Energy Agency (ARENA) under the Renewable Hydrogen Deployment Round to develop a project for the commercial scale production of hydrogen gas in Australia.
“As we progress the Australian Vanadium Project towards production, our social and environmental approach becomes of increasing importance to stakeholders and investors,” managing director Vincent Algar said.
“Working with a company of ATCO’s calibre will enable AVL to use green hydrogen in the natural gas supply, thereby reducing our carbon footprint.”
The non-binding memorandum of understanding is for a two-year period and covers the supply of green hydrogen for an initial 10 years with the option to renew for a further 10-year term.
Australian Vanadium has previously announced plans to use green hydrogen to improve its namesake project’s economics and reduce its carbon footprint.
Besides integrating hydrogen into the natural gas pipeline, the company also foresees the use of ammonia – a byproduct of hydrogen production – in vanadium processing and using the gas to fuel mine site vehicles and long haul trucks.
Hydrogen could also be used to reduce the iron ore product remaining after vanadium processing into pig iron and titanium.
This article was developed in collaboration with Australian Vanadium, 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.