- Blue Energy (BLU) signs a memorandum of understanding (MOU) with Stanmore Resources (SMR) for the future supply of hydrogen
- It follows the companies’ prior non-binding MOU for the commercialisation of mine gas from SMR’s proposed adjacent operation in Queensland
- BLU is investigating the potential conversion of pre-development gas to hydrogen to supply SMR’s Isaac Plains Complex equipment fleet
- Conversion of the gas, which would otherwise be flared, is slated to reduce the company’s greenhouse gas emissions and SMR’s fleet’s diesel usage
- Blue Energy shares are trading steady at 6.7 cents, while shares in Stanmore Resources shares rose 5.05 per cent to close at 73 cents
Blue Energy (BLU) has signed a memorandum of understanding (MOU) with fellow ASX-player Stanmore Resources (SMR) for the future supply of hydrogen from its authority to prospect (ATP) 814 tenement in Queensland’s Bowen Basin.
The latest deal follows a prior non-binding MOU between the companies for the commercialisation of mine gas from Stanmore’s proposed underground operation, adjacent to ATP 814.
Blue is investigating the potential conversion of pre-development gas production from pilot gas well operations to hydrogen for supply to Stanmore’s Isaac Plains Complex equipment fleet.
According to BLU, the pilot gas used for the conversion would otherwise be flared.
In this way, the trial is slated to reduce Blue’s greenhouse gas emissions and reduce Stanmore’s diesel usage. This, in turn, will reportedly reduce the carbon-dioxide produced by SMR’s fleet vehicles.
Further, BLU is investigating “off the shelf”, portable, modular hydrogen generation equipment.
The equipment can be installed either centrally or at the well head, with the generated hydrogen transported in purpose-built cylinders to Stanmore’s Isaac Plains Complex site for use by its fleet.
Blue Energy’s managing director, John Phillips, said of the trial: “Being able to avoid flaring of pilot gas production by converting it to hydrogen is a step forward in reducing emissions prior to gas developments and, in this case, has the added bonus of also lowering emissions from neighbouring mining operations.”
BLU is in the process of establishing technology partners for the hydrogen trial.
Importantly, with a foundation hydrogen off-taker already secured, the company said it was confident the use of hydrogen from its pre-development activities was a positive step towards lowering the Bowen Basin’s greenhouse gas emissions footprint more broadly.
Blue Energy shares closed steady at 6.7 cents, while shares in Stanmore Resources ended the day at 73 cents.