Lion Energy, an Australia-based gas and oil developer, has entered into a AUD 10 million ($6.8 million) joint development agreement. The agreement is with DGA Energy Solutions Australia, a subsidiary of Mitsubishi, and Samsung C&T. The goal is to develop a renewable hydrogen generation and refueling hub at the Port of Brisbane, Australia.
Renewable Hydrogen Production and Refueling Facility Details
The planned renewables-based hydrogen production and refueling facility will include two 1 MW alkaline electrolyzer packages. It will have the capacity to deliver 850 kg per day of green hydrogen. The total production capacity will exceed 300 tons per annum.
The hub will primarily target heavy mobility fleets, initially focusing on supplying hydrogen to:
- Domestic public bus fleets
- Truck fleets
- Fuel cell gensets for the construction and mining industry
Project Funding and Ownership Structure
Under the agreement, DGA and Samsung will initially pay AUD 3.7 million to Lion Energy for pre-construction costs. Upon agreeing to start construction, DGA and Samsung will procure debt financing totaling AUD 6.3 million. Lion Energy will own 50% of the project, while DGA and Samsung will each own 25%.
Project Progress and Potential
Lion Energy has already secured relevant government approvals and a long-term lease on a site at the Port of Brisbane. Agreements are also in place for key equipment, including electrolyzers, compressors, and the dispensing package.
Executive Chair Tom Soulsby believes the Port of Brisbane facility could serve as a blueprint for other green hydrogen ‘hub and spoke’ supply facilities across eastern Australia. The project has already generated interest from potential customers. Offtake agreements are expected to be announced in Q3 2024.
Conclusion
The joint development agreement between Lion Energy, DGA Energy Solutions Australia, and Samsung C&T marks a significant step forward. It advances the development of green hydrogen infrastructure in Australia. This renewable hydrogen hub in Brisbane could pave the way for wider adoption of green hydrogen. It could contribute to the decarbonization of heavy mobility and industrial sectors.
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