Queensland Pacific Metals (ASX:QPM) jumps on hydrogen deal for TECH Project

Highlights 

  • Queensland Pacific Metals has extended its working relationship with Edify through a new MoU.
  • QPM will purchase hydrogen from Edify’s large-scale, green hydrogen production facility at Lansdown.
  • The hydrogen secured would supplement the Company’s gas supply.
  • The Company believes that its TECH Project boasts unrivalled ESG credentials amongst developing nickel projects.

Australia-based metal exploration company Queensland Pacific Metals Ltd (ASX:QPM) has executed a non-binding MoU with Edify Energy, a leading, sustainable energy producer.

Under the memorandum of understanding, QPM will purchase hydrogen from Edify’s large-scale green hydrogen production facility planned to be located within the Lansdown Eco-Industrial Precinct in Australia. The hydrogen purchase is expected to supplement the Company’s gas supply.

Triggered by the update, QPM shares jumped approximately 5.1% to trade at AU$0.205 on 29 November 2021, recording the best trading day in the last one week.

Also Read: What is Queensland Pacific’s (ASX:QPM) carbon negative update?

Notably, Edify is an Australia-based renewable energy and storage company with a robust and diverse growing portfolio.

In December last year, the two companies entered a heads of agreement covering the supply of solar energy from Edify’s proposed Majors Creek Solar Power Station to the TECH Project.

The MoU terms  

Source: © Audioundwerbung | Megapixl.com

Image Description-Hydrogen Plant

Under the terms of the agreement, Edify will supply 100,000 gigajoules equivalent per annum of pure hydrogen gas, up to ~4,000kL of wastewater, and 4.2 x 106 Nm3 of oxygen gas to QPM.

The significant deal demonstrates Queensland’s commitment to make the TECH Project a global leader in ESG (Environmental, Social, and Governance) credentials for the production of critical battery metals.

Good Read: From Senex Energy to Myer: Five ASX stocks that hogged limelight today

Mutual benefits

The hydrogen MoU delivers various advantages to Edify and QPM, such as:

  • Edify gets access to a baseload customer, which is expected to support the development of its hydrogen plant. The baseload will allow Edify to run its hydrogen plant by providing it a permanent minimum load to feasibly run the plant.
  • Oxygen produced by Edify as a by-product can be used by QPM in the acid regeneration part of its flowsheet instead of being unused.
  • Wastewater generated by Edify is to be sold to QPM at competitive rates. The explorer can use wastewater in its processing plant.

Must Read: Commodity wrap-up for the week that was

Bottom Line

QPM and Edify have joined hands to build business relationships using sustainable practices. QPM is developing the TECH Project, which is focused at re-energising Australia with critical battery metals production .

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK