Elixir Energy Ltd (ASX:EXR) has demonstrated the potential “world class nature” of Gobi H2 green hydrogen project in Mongolia after evaluation of bankable quality renewable data for the project.
The strength of the concept behind the project was demonstrated in mid-2022 when Elixir signed a Memorandum of Understanding (MoU) over GobiH2 with Japan’s SBEnergyCorp.
The company procured a pre-feasibilty study (PFS) from global consulting firm AECOM earlier this year to give the parties confidence to advance the project.
Looking ahead, green hydrogen infrastructure projects in neighbouring China including the development of a regional hydrogen pipeline transmission network can ultimately be expanded northwards to capture the benefits of the Gobi’s exceptional renewable resources.
Bankable level renewable energy data
Elixir managing director Neil Young said: “Our ongoing work at Gobi H2 continues to demonstrate the potential world class nature of the project.
“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 – and Gobi H2’s location is much closer to the world’s largest energy importing market.
“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.”
Ready to access Chinese markets
Elixir's longstanding experience in Mongolia's energy sector and stakeholder engagement with governments (at multiple levels), communities and customers has provided a strong foundation upon which to build the Gobi H2 business.
The location of the Gobi H2 project provides ready access to rapidly growing Chinese hydrogen markets.
Regional H2 transmission infrastructure is already emerging - for example, Sinopec's recent announcement of a 400-kilometre H2 pipeline in Inner Mongolia.