Green methanol study boosts hydrogen plans

We’ve taken another significant step today in firming up how we intend to use the Natural Hydrogen we want to harvest from our South Australian tenement.

The Memorandum of Understanding executed with one of our key strategic partners, released to the ASX today, paves the way for a pre-feasibility study for a green methanol production facility on the Yorke Peninsula.

Mitsubishi Gas Chemical (MGC), the major Japanese company who bought into our company last year, are one of the world’s leaders in methanol production.

Their agreeing to work on a preferred offtake option with us comes as we prepare to launch the flow testing program which will determine if we are able to move to early production of either the Natural Hydrogen or Natural Helium we’ve found in world leading purities so far.

MGC clearly sees that our vision for the potential of the region is on the money. The Yorke Peninsula potentially offers a combination of fundamentals supportive of low-cost green methanol production, including low-cost Natural Hydrogen feedstock, competitive South Australian renewable electricity, abundant under-utilised cereal-straw biomass, deep-water port access, and established infrastructure.

Methanol has a global market of US$36 billion and green methanol is seen as the future of a lower-emissions, cleaner product across a growing range of uses; with the rapid conversion of international shipping fleets particularly notable.

Our flow testing campaign is close and this is another tangible sign we are moving towards pilot programs.

Preparation work is under way on the Yorke Peninsula for flow testing.

We have already announced that we are working with Canadian experts Quantum Technology Corp, a specialist in modular skid‑mounted helium and hydrogen purification plants, on a potential helium production pilot plant. Their technology would allow us to transform our raw gas into high pressure pure helium. Watch out for more news from Quantum during flow testing. 

Helium might well end up being our priority first target, because of world supply issues and the fact Australia has no local producers. 

It’s worth noting this new analysis from helium experts Akap Energy: "(The helium market) has tipped into an acute shortage and that dislocation is showing up in spot pricing. We heard spot increases of roughly 50–150%."

Their summation from a recent specialist gas supply summit is well worth reading here.

These opportunities are what makes this exploration business so enticing. We’re at the sharp end now and we’ll keep you closely informed during the test campaign.

ASX Announcement: MOU Executed with MGC for Green Methanol Studies