- Elixir Energy (EXR) signs a memorandum of understanding (MoU) with Mongolia Green Finance Corporation (MGFC) for its green hydrogen project in Mongolia
- Under the MoU, the companies will work together to seek project financing for the first phase of the Gobi H2 project which is a green hydrogen pilot plant
- Elixir says the Gobi region is one of the best locations in the world to export green hydrogen due to its renewable resources and proximity to hydrogen markets
- Company shares have been up 18.8 per cent to trade at 19 cents
Elixir Energy (EXR) has signed a memorandum of understanding (MoU) with Mongolia Green Finance Corporation (MGFC) for its green hydrogen project in Mongolia.
The MGFC is a public-private sector corporation that was established to facilitate the financing of Mongolian projects that will support the global energy transition to a net-zero carbon future.
Elixir is focused on developing its Gobi H2 project as part of its strategy to export green hydrogen from the Gobi region which is regarded as ‘one of the best locations in the world’ to export green hydrogen due to its renewable resources and close proximity to likely hydrogen markets.
The MoU will see the companies work together to finance the first phase of the Gobi H2 project which will be a green hydrogen pilot plant.
Specifically, they’ll search for carbon offset opportunities as part of Elixir’s aim to reduce its current exploration/appraisal stage scope one and two carbon emissions, and develop larger scale nature-related offsets to offset emissions during the production stage.
The deal will also see the pair collaborate with international financial institutions for project financing of the proposed green hydrogen pilot production plant.
“All the work we are doing on our Gobi H2 project serves to reinforce our original starting concept: the country is a potential tier one location for large scale hydrogen exports,” Elixir Energy Managing Director Neil Young said.
“Elixir’s first mover advantages are being progressively locked in and it is fantastic to see the rapidly growing interest in this future facing industry from multiple local and international stakeholders,” he added.
This MoU follows one signed in October 2021 with the Ministry of Energy. Elixir has just delivered the Mongolian government a detailed analysis of the legal issues surrounding the green hydrogen project.
The analysis concluded “the existing Mongolian legal regime supports the development of green hydrogen projects in Mongolia without the need for any major new legislation”.
In addition, Elixir has recently formalised its relationship with Mongolian drilling company, ErdeneDrilling, over procuring water for hydrogen. The parties are planning field-based water exploration and appraisal activities for later in the year.
Company shares were up 18.8 per cent to trade at 19 cents at 12:02 pm AEDT.