Next Investors logo grey

Real Energy targets hydrogen fuel industry

Published 20-MAY-2020 10:09 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Real Energy Corporation Limited (ASX:RLE) has established a wholly-owned subsidiary, Pure Hydrogen Corporation Pty Limited, to undertake a detailed scoping study to assess the commercial viability of building, owning and operating a hydrogen fuel plant in Queensland.

Real Energy is an Australian east coast focused gas company with interests in the Cooper and Surat Basins.

Via the subsidiary, Pure Hydrogen Corporation, it is now targeting a plant that can initially produce 36 million kilograms of hydrogen per annum.

Real Energy’s Board has been assessing the opportunities for hydrogen following the release of the Federal Government’s road map for Australia’s National Hydrogen Strategy in November 2019.

In May 2020 the Federal Government committed to invest $300 million in Australia’s emerging hydrogen industry.

00 - RLE.PNG

Three sites for potential large-scale production

Real Energy’s Pure Hydrogen Corporation has already made progress, earmarking two potential sites in Queensland to establish a large-scale hydrogen fuel plant with a minimum annual production capacity of 36 million kilograms.

As a guide, a plant of this size has the ability to power approximately 240,000 Hyundai Nexo’s for a year.

Potential project sites are being reviewed in the Surat Basin, adjacent to Real Energy’s existing 50%-owned Project Venus CSG project, as well as another site near Gladstone.

The scoping studies will be undertaken by experienced engineering consulting firms and a dedicated team that Pure Hydrogen Corporation will establish.

Management is also assessing eligibility for government funding.

Hydrogen is high energy fuel that can be burned with no carbon dioxide emissions and the market is expected to grow rapidly as it can be used throughout the transportation industry, particularly in buses, trucks and cars.

Toyota, Hyundai, Honda and Audi have each either recently released models or are planning to release models that are powered by hydrogen fuel cells.

Utilisation of gas resources for feedstock

The two main ways of making hydrogen are either processing natural gas or through converting water to hydrogen through a process known as electrolysis.

Real Energy’s existing gas resources could be utilised to provide gas feedstock for a natural gas to hydrogen plant.

Additionally, the wastewater from dewatering the coal seam gas field of Project Venus could be used to produce hydrogen.

Explaining the rationale behind the hydrogen strategy, as well as its positioning alongside Real Energy’s other assets, managing director Scott Brown said, “For some time our Board has been assessing the options for establishing a dedicated entity to assess opportunities to build a large-scale hydrogen fuel plant in Queensland.

“With the Federal Government also committed to this sector, we believe our investment and commitment to these scoping studies is appropriately timed and we see enormous potential to develop a hydrogen industry in Australia.

‘’We look forward to providing shareholders with regular updates as we narrow in on a preferred site.

“Whilst this is an excellent development for Real Energy, it in no way detracts from our efforts in advancing Project Venus and extracting value from our Windorah Gas Project.’’

‘’These projects remain important to Real Energy’s ambitions in Queensland and we expect to report on progress with respect to Project Venus very soon.”

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.