QEM Ltd (ASX:QEM), Australian exploration and production company developing the Julia Creek oil shale and vanadium project in North Western Queensland, announced that it has launched studies into green hydrogen opportunities at its project site.
QEM will be looking to produce hydrogen using an on-site solar-powered electrolyser, at first to support the energy needs of other resources projects in the vicinity. Ultimately, the company intends to use the hydrogen for the hydrogeneration of its raw oil into transport fuels.
The studies will focus on investigating QEM’s financial and regulatory requirements to produce hydrogen at Julia Creek. The company said it has hired E2C Advisory Pty Ltd to assist in the assessment of capital and operating costs.
“The commissioning of these studies will lay the groundwork to advance our green hydrogen strategy at Julia Creek, amid increasingly buoyant market conditions and the project’s optimal location and resource profile to produce hydrogen on-site, said QEM managing director Gavin Loyden.
QEM is further emboldened by the Queensland state’s plans for the local hydrogen economy after the government appointed a minister for hydrogen in November 2020.
The company said it will start discussions with the state government on how to progress the approval process to access water resources for the potential development, and work on securing relevant approvals once E2C completes the studies.
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