Last week, RLE shares tacked on roughly 33% in one day when the company annouced it would collaborate on the development of a network of hydrogen refuelling points with HYZON Motors.
Source: Trading View
The two deals, announced just days apart, have more than doubled the RLE share price after they struggled to generate a return last year.
A change in gas
RLE shares saw a surge on 10 December last year, the day the company announced it was planning to enter the hydrogen market.
For those that don’t know, RLE is an oil and gas exploration and development company with a focus on the Cooper Basin.
Last year the company unveiled its 100%-owned hydrogen division, Pure Hydrogen Corporation Pty Ltd, as part of its pivot into clean energy.
Today RLE said Pure Hydrogen had entered into a joint venture with Liberty Hydrogen to develop four major hydrogen hubs on Australia’s east coast.
The newly established joint venture company, Pure Hydrogen International Inc, will be incorporated in the US and develop two hubs in Queensland, one in NSW, and one in Victoria.
Initially Pure Hydrogen will have a 60% stake in Pure Hydrogen International in return for contributing two potential projects in Queensland (Project Jupiter and Project Mars).
While Liberty Hydrogen will contribute two projects located in the Newcastle region in NSW and south-east Victoria.
RLE’s managing director Scott Brown said the projects will be small at first but have room to expand with market demand.
‘We have focused on four sites that are in close proximity to Ports on the East Coast of Australia. Initially we aim to have small pilot plants at these locations to sell hydrogen fuel to local customers but as the market expands we have room to significantly expand production to include exports.’
Real potential for hydrogen in Australia
Used in fuel cells, hydrogen produces only water vapour and electricity, and produces more energy per kilogram than natural gas.
Modelling by the Australian Renewable Energy Agency has forecast Australian hydrogen exports are expected to contribute a total of $1.7 billion and 2,800 jobs to Australia’s economy by 2030.
Forecasts from Deloitte show the global market for hydrogen is expected to expand at a rate of 5.8% to US$180.2 billion by 2025, with approximately 45% of total forecasted production set to come from the Asia Pacific region.
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For Money Morning