Elixir Energy reveals a world-class green hydrogen project

Thu 11 May 23, 12:45pm (AEST)
A tanker sits on the back of a truck with the words Hydrogen painted longways across it in blue
Source: iStock

Key Points

  • The Gobi H2 project in Mongolia has world-class wind and solar resources for green hydrogen production
  • Pre-Feasibility Study shows the project qualifies for green definitions in major jurisdictions
  • Elixir plans to move energy to Chinese markets via pipeline and has a partnership with SB Energy (now Terras Energy) for a potential joint venture

Elixir Energy (ASX: EXR) says its Gobi H2 project In Mongolia has the potential to be a world-class green hydrogen project after ‘bankable’ data demonstrated market leading wind and solar resources in the area.

“The quality of renewable energy inputs are one of the keys to green hydrogen success – this can be seen as equivalent to such measures as grades in minerals or flow-rates in oil and gas,” Elixir said in its Gobi update presentation.

“The following table provides an update on Gobi H2’s resources – and again compares these to other locations in Australia and globally which are the proposed sites for green hydrogen projects.”

2023-05-11 12 35 13-Gobi H2 Update and Presentation
Source: Elixir Energy (May 2023)

“We now have “bankable” level renewable energy data – which together with location is the key determinant of quality. That data is unsurpassed by any other potential green hydrogen export project we have looked at,” said Managing Director Neil Young. 

Gobi’s Pre-Feasibility Study

Elixir commissioned a Pre-Feasibility Study (PFS) for Gobi H2 earlier this year – which evaluated various configurations of wind, solar, battery and grid connection to support a 10MW electrolyser and a large scale pilot plant.

The studies indicate that Gobi H2 qualifies for the various green definitions of main jurisdictions – including Europe, US, China and the UK.

“Projects which involve grid connections to electricity systems with still significant fossil fuel use, may well struggle to be deemed green,” the company said.

Elixir plans to move its energy from Mongolia to Chinese markets via pipeline, which it views as a more efficient form of delivery. Encouragingly, the development of a regional hydrogen pipeline grid is currently underway by China’s oil and gas conglomerate, Sinopec. 

Make it binding

The Gobi H2 project shares a Memorandum of Understanding with SB Energy, which currently operates a 50 MW wind-farm in the Gobi region.

More recently, SB Energy was renamed as Terras Energy Corp following the sale of a 85% stake in the company to Toyota. 

“We are very pleased to now welcome a member of the Toyota Group as the new controller of our Japanese partner and look forward to continue to build our relationship with them,” said Young.

The parties are aiming to move towards a potential binding joint venture and Front-end Engineering Design decision later this year.

Elixir Energy Ltd (ASX EXR) Share Price - Market Index
Elixir Energy 12-month price chart (Source: Market Index)


Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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