Province Resources Ltd’s [ASX:PRL] share price is rising after securing the first approval necessary for its green hydrogen project.
As part of the approval, PRL was granted a licence for a site north of Carnarvon, Western Australia.
PRL shares are currently trading at 16 cents a share, up 3.3%.
Over the course of 12 months, the PRL share price managed to climb about 400%.
Will today’s announcement act as a catalyst for share price gains?
Let’s dive into the details and find out more.
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HyEnergy Green Hydrogen Project advances
The licence granted to PRL is a section 91 licence under the Land Administration Act.
It allows Province Resources to begin environmental and other on-ground studies on site to support a broader feasibility study for its project.
The licence covers a 98.6 square kilometre site north of Carnarvon, also known as the Town Common.
The primary aim for Province Resources is to make it a production site for the HyEnergy Project, and home to some upstream generation assets.
Discussions are in progress with the WA state government and the Shire of Carnarvon to get a long-term lease of the area.
PRL also mentioned ongoing discussions with the state government, traditional owners, and pastoralists about a broader area of the Gascoyne region to support large-scale wind and solar generation assets.
Now, once PRL’s green hydrogen project is fully developed, it will have a capacity of up to 8GW.
However, Province said an initial phase may be developed with a smaller capacity.
According to the Institute for Energy Economics and Financial Analysis, there are at least 50 green hydrogen projects currently under development worldwide, with a total annual renewable power capacity of 50GW.
In a recent report, the institute concluded there is ‘ample room for more hydrogen projects to meet global demand,’ labelling this a nascent industry.
Province Resources Managing Director David Frances said:
‘This approval allows us to get on the ground to commence our environmental, heritage, geo technical and other survey work.
‘It means we get can get a better understanding of the physical properties of the location to support our concept selection process.
‘We are looking forward to being on site in the coming weeks to begin this important work.’
First milestone among many for the PRL Share Price?
While today’s licence was welcome news, it marks only the beginning of the approval process.
As Frances noted, the section 91 licence is ‘only a preliminary step in overall approvals required for the project.’
What the licence does grant is opportunity to commence PRL’s environmental, heritage, geo-technical, and survey work.
It is this surveying work that will inform PRL’s long-term success.
The company said it is excited to get on site in the coming weeks to begin this ‘important’ work.
Province is sitting on a cash pile of $23.6 million following an oversubscribed $18 million capital raising in May led by ESG and other institutional funds.
PRL will aim to use these funds to further expand their scoping and feasibility studies.
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