Hydrogen play ReNu Energy (ASX: RNE) was up around 4.5% in early morning trade following an update on its work on the Melbourne Hydrogen Hub (MHH) project.
While still subject to shareholder approval (1 February), the company noted that its recent acquisition of domestic hydrogen player Countrywide Renewable Hydrogen (CRH) is also “continuing to progress well”.
Initially targeting domestic market demand, CRH originates green hydrogen projects with a view to developing them in collaboration with project partners and governments.
CRH’s business model is to retain equity in each project as it moves through development, into production and revenue generation.
Within today’s update, the company advised shareholders that progress with the MHH project and CRH's two other projects - supported by existing non-binding strategic collaboration agreements, and potential for material domestic green hydrogen demand - provide strong tailwinds to progress the pipeline of green hydrogen opportunities during 2022.
Management’s 2022 green hydrogen focus is to build on the project origination outcomes achieved and progress the three Australian projects by securing land, partners, power purchase and offtake agreements.
Planned for Melbourne’s northern suburbs, the MHH project aims to supply green hydrogen initially to three bus companies to accelerate the transition to emission-free hydrogen fuel cell electric buses.
Green hydrogen produced at MHH will also have broader applications in transport (such as in trucks and materials handling equipment) and in natural gas decarbonisation.
ReNu Energy and CRH expect proprietary modelling by VH2 - Swinburne University of Technology’s Victorian Hydrogen Hub - to provide opportunities to optimise the MHH Project and strengthen CRH’s technical and commercial capability for application in its other projects (Hydrogen Tasmania, and Hydrogen Portland).
CRH managing director Geoffrey Drucker is confident that collaborating with such a high calibre organisation as VH2 will provide valuable insight into the most cost effective and efficient way to power both the MHH project and future developments.
“One of our main focuses for MHH is providing emissions reductions for road transport and materials handling. This is a large, addressable market for CRH and will allow the company to target a suite of corporate customers,” Drucker said.
To capitalise on its pipeline of Australian project opportunities, CRH has collaboration agreements in place with several large companies, interested in providing renewable energy, land and taking green hydrogen produced by the projects for use in mobility, power generation, natural gas decarbonisation and materials handling.
CRH is also building a pipeline of offshore opportunities in Atlantic Canada and Pacific Northwest USA.
ReNu Energy's share price over the last 6 months.
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