Queensland Pacific Metals Ltd (ASX:QPM) has executed a non-binding memorandum of understanding (MOU) with Edify Energy Pty Ltd for the supply of green hydrogen from Edify’s planned large-scale, green hydrogen production facility within the Lansdown Eco-Industrial Precinct in north Queensland.
The hydrogen purchased from Edify would supplement QPM’s gas supply.
This MOU is in addition to a previously executed Heads of Agreement with Edify relating to the potential supply of solar power from Edify’s proposed Majors Creek Solar Power Station to the Townsville Energy Chemicals Hub (TECH) Project.
The deals demonstrate QPM’s commitment to make the TECH Project a global leader in environmental, social and governance (ESG) credentials for critical battery metal production.
Enhance green credentials
QPM managing director Dr Stephen Grocott said: “Our working relationship with Edify is a demonstration of two Australian companies working together to build business relationships using sustainable practices.
“Any opportunity we have to enhance the green credentials of the TECH Project is something we must consider and evaluate and the use of hydrogen is just another one of these opportunities.
“The opportunity to work with a leading, sustainable energy producer such as Edify is a bonus and a delight.”
Synergistic relationship
Edify Energy chief executive John Cole added: “The synergistic relationship we have with QPM is a prime example of how a decarbonised and advanced manufacturing ecosystem can be realised.
“We think it creates a blueprint locally and more broadly across the region.
“The green credentials ambition of the TECH Project is admirable, and a sign of the zero-emissions supply chain model that all exporters will need to transition towards.
“Edify is very pleased to be working closely with QPM and to be able to offer carbon-free energy and industrial process inputs creating a circular economy at our co-located operations.”
MOU terms
Under the terms of the MOU, Edify will supply to QPM:
➢ 100,000 gigajoules equivalent per annum of pure, green hydrogen gas;
➢ 4.2 x 106 Nm3 of oxygen gas; and
➢ Up to around 4,000kL of wastewater.
Mutually beneficial
This mutually beneficial relationship, underpinned by co-location in the Lansdown Eco-industrial Precinct, provides advantages for both parties.
The advantages include:
➢ Edify receives a baseload customer to underpin the development of the hydrogen plant;
➢ Edify produces oxygen as a by-product, which can be used by QPM in the acid regeneration part of its flowsheet, instead of the oxygen being an unused by-product; and
➢ Wastewater to be sold to QPM at competitive rates, which can be utilised by QPM in its processing plant.
Edify
Edify is a market-leading, Australian renewable energy and storage company with a diverse and rapidly expanding portfolio of assets.