Australia-based gas and oil developer Lion Energy said it has entered into a definitive joint development agreement with DGA Energy Solutions Australia and Samsung C&T to develop a renewable hydrogen hub at the Port of Brisbane.
Perth-headquartered Lion Energy plans to construct a renewables-based hydrogen production and refueling facility at the Port of Brisbane. The project is to include two 1 MW alkaline electrolyzer packages with capacity to deliver 850 kg per day of green hydrogen, with total production capacity in excess of 300 tons per annum.
The hub is geared toward heavy mobility fleets with an early focus on supplying hydrogen to domestic public bus fleets, truck fleets, and fuel cell gensets for the construction and mining industry.
Lion Energy Executive Chair Tom Soulsby said the development agreement reflects 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.
DGA and Samsung will initially pay AUD 3.7 million to Lion Energy for pre-construction costs and upon the parties agreeing to start construction will procure debt financing totaling AUD 6.3 million.
Under the agreement, Lion Energy will own half of the project and the partners a quarter each.
Lion Energy said it has already obtained relevant government approvals for the project and inked a long-term lease on a site at the Port of Brisbane. Agreements are also in place for key equipment, including electrolyzers, compressors and the dispensing package.
Soulsby said the Port of Brisbane facility is likely to create a blueprint for other green hydrogen ‘hub and spoke’ supply facilities across eastern Australia with the project having generated interest from potential customers.
“We are now quite confident that our initial markets for our green hydrogen production will be the displacement of grey hydrogen to green hydrogen for industrial customers, fuel cell gensets and heavy mobility players such as bus operators and truck fleet managers,” he said. “We expect to update the market on offtake agreements in Q3 2024.”
