Elixir Energy Ltd (ASX:EXR) is thrilled with the renewable resources in the Gobi region, which it describes as world class, after a wind profiler deployed in the desert returned very high quality data.
Elixir deployed the SODAR equipment to measure wind resources at its Gobi H2 green hydrogen project in southern Mongolia over a year ago.
Data collection and interpretation from the SODAR by local renewable energy consulting company EBN Energy Trade LLC have shown a capacity factor of 38-39% at a hub height of 80 metres, which when put into context means that placing a wind-farm on the site sets it among the top operating wind-farms in Australia, one of the strongest wind power locations in the world.
EBN Energy is currently installing two new SODARS in the Gobi region to gather site-specific data and to establish regionally relevant information along an extensive 100-kilometre strike line adjacent to infrastructure and water resources.
Water is available
As Elixir continues to progress its hydrogen strategy, the next logical step would be to source for water for the production of green hydrogen.
To that end, the company recently drilled three water exploration wells in the Gobi. One established a flow rate of 0.5 litres per second – around half that required for the planned pilot project.
Based on this, the company is convinced that new sources of water can readily be found, and at modest cost.
Further water exploration wells will be drilled later this year once the location for the proposed pilot production plant has been finalised with partner SB Energy (SBE).
Gobi visit
Representatives of Elixir and SBE, a wholly-owned subsidiary of Japan’s SoftBank Group Corp, recently toured the Gobi region, which included a visit to SBE’s operating Tsetsii wind farm.
Under the MoU related to the Gobi H2 project signed in June this year, the parties are currently pursuing the following activities:
- Elixir is investigating water supply options, for both a planned pilot project and for the longer term gigawatt scale project, which will include desk-top and drilling work;
- both parties are engaging with Ulaanbaatar-based international finance institutions (IFIs), which would be a likely source of project finance for the pilot project. The IFIs are to date very supportive of the Gobi H2 project as their energy-related investment mandates are increasingly focused on de-carbonisation business activities. Additionally, SBE is investigating various potential sources of Japanese Government fiscal support;
- Elixir has engaged AECOM, one of the world’s leading engineering infrastructure consulting firms with a growing business in the hydrogen sector, to undertake a pre-feasibility study (PFS) into the proposed pilot project;
- SBE is leading an engagement process with potential hydrogen customers in both Mongolia and China. Mining companies in the region are seeking to reduce their Scope 1 and 2 emissions over the next few years and potentially using hydrogen to replace diesel in mine trucks is a key focus area for the global mining industry;
- both parties have existing programs to garner bankable quality renewable energy data in the Gobi region; and
- site options for the proposed pilot are being jointly evaluated. Existing infrastructure in the Gobi region includes good road and rail links to China, which is relevant not only to delivering green H2 to customers, but will also underpin a low-cost structure for installing renewable energy and electrolyser facilities.
Ammonia production
Signing of R&D contract at the Laboratory for Clean Energy Technology Development.
Elixir has signed a research and development contract with the Laboratory for Clean Energy Technology Development within the National University of Mongolia to study the potential for green hydrogen to be used to produce ammonia in the country. The key ingredient, used in fertiliser and mining explosives, is currently imported into the country.
Elixir managing director Neil Young said: “The Gobi H2 project – now being pursued jointly with a party of the exceptional quality of SB Energy, is making great progress on multiple fronts. The renewable resources in the Gobi region are truly world class and the other key ingredient for green hydrogen production – water – is proving readily available.”