ReNu Energy (ASX:RNE) has shot up 34% today as the company announced the commencement of a green hydrogen production project in Southern Tasmania.
ReNu claims it is targeting an online electrolysis hydrogen production project by Q4 of 2023.
If this goes ahead, ReNu energy will be one of the very first companies to begin producing green hydrogen proper in Australia.
For an overview of green hydrogen, you can read Market Index’s explainer here.
Currently, the company is expecting to lease land in Brighton, north of Hobart, to establish a facility of 1-2MW capacity.
This gives the project a forecast daily production range between 430kg-900kg of green hydrogen per day.
ReNu has identified a number of markets for the product.
Pursuant to hydrogen gas supply to industrial customers, other opportunities for sale include:
Blending of hydrogen into the TasGas pipeline network
Fuel supply for ongoing hydrogen fuel bus trials
Fuel supply for demonstration trials in hydrogen fuelled long-haul trucking.
The company is to facilitate its subsidiary Countrywide Renewable Hydrogen (CRH2) in the project, which ReNu acquired late last year.
Currently, CRH is responsible for executing a lease with Bullock Civil for land in Brighton, adjacent the Brighton Transport Hub with existing road and refuelling infrastructure on-site.
CRH2 is also tasked with negotiating the supply of an electrolyser. That process may take some time.
In February this year, India’s Economic Times reported a global supply shortage of electrolysers was hampering the roll-out of hydrogen development in the region.
All in all, the project will be backed by ReNu, CRH2, the Tasmanian government, Bullock Civil, and an undisclosed “identified partner.”
Taking note of current strife in the electricity market, the company notes it may move ahead with the development of a solar farm north of the project to lower opex.
ReNu has hired Entura consultants to prepare a feasibility study to this end.
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