Eurasia Mining PLC (AIM:EUA) said it has identified opportunities in hydrogen/ammonia production which are complementary to the platinum group metals (PGM) business in Russia.
The palladium, platinum, rhodium, iridium and gold producing company published a strategy and progress update focusing on the hydrogen and ammonia markets.
The company said it has signed an agreement with H4Energy, an engineering and development company that is under the management of H2Transition Capital, a company founded by ex-Shell energy transformation team members.
H4Energy intends to form a joint venture with Eurasia to develop hydrogen/ammonia projects in Kola and Sakhalin, Russia.
Support for the development of the projects on the Federal level has been secured from the Deputy Prime Minister of Russia / Presidential Envoy to the Far Eastern Federal District.
An agreement has been signed with State Far East and Arctic Development Corporation (ERDC) to assist with the procurement of land and energy supplies in relation to both the Kola and Sakhalin hydrogen/ammonia projects, while energy supply agreements with regional energy suppliers are in the process of being negotiated by Eurasia and H4Energy.
Furthermore, several off-take agreements are being discussed including own use of hydrogen for Eurasia's mining equipment for the Kola operations while a project finance plan is being developed further to ongoing discussions with Asian investors.
"The directors are delighted to see tangible progress in the development of a broader Eurasia growth strategy, 'Eurasia v.2.0' in the ammonia and hydrogen markets alongside the development of our existing world-class battery metals and PGM projects. We are confident this will create new opportunities for value creation and expand our company's business,” said Christian Schaffalitzky, the executive chairman of Eurasia.
Shares in Eurasia were up 2.5% at 22.75p.