Ahead of a signing ceremony in Brisbane, executive chairman Tom Soulsby said the development pact reflected a confidence not only in the significant potential for green hydrogen in Australia but also in Lion’s capabilities.
“For Lion, the transaction results in the project being funded and will allow us to allocate existing and future capital for new projects,” he said.
Lion already has a 20-year lease on a site at the Port of Brisbane where it hopes to produce the alternative fuel and refuel the city’s future bus fleet.
The “hub and spoke” project could create a blueprint for other refuelling facilities across eastern Australia, the proponents say.
The project includes a green hydrogen production and dispensing infrastructure at the port, with total production capacity of more than 300 tonnes per annum.
Mr Soulsby said there had been hydrogen offtake interest as the project matured into the joint development agreement.
He expected initial demand to be from bus operators and truck fleet managers and for hydrogen fuel cells to replace diesel generator sets at construction, mining and event sites.
DGA and Samsung will initially pay a total of $3.7 million to Lion for pre-construction costs and will procure debt financing totalling $6.3 million to start construction.
When up and running, Lion Energy will own half of the project and the partners a quarter each.
Lion said agreements were in place with key equipment providers, securing the supply of two electrolysers and a refuelling package.
The ASX-listed company is also expected to update the share market on offtake agreements by the end of September.
“A future made in Australia is a future made in Queensland, and this is direct evidence of that,” industry body Zero Carbon Hydrogen Australia spokeswoman Joanna Kay said.
“This puts Brisbane at the centre of a green hydrogen future,” she said.
