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Real Energy (ASX:RLE) establishes Pure Hydrogen to tap into Australia’s hydrogen strategy

Energy
ASX:RLE
20 May 2020 17:30 (AEST)
Real Energy Corporation (ASX:RLE) - Managing Director, Scott Brown

Source: 121 Oil & Gas Investment

Real Energy Corporation (RLE) has established the Pure Hydrogen Corporation to undertake a detailed scoping study to assess the viability for a hydrogen fuel plant.

Real Energy has been assessing hydrogen opportunities ever since the Federal Government published a road map for Australia’s National Hydrogen Strategy in November 2019.

This strategy sets a vision for a clean, innovative, safe and competitive hydrogen industry that claims will benefit all Australians. It aims to position the industry as a major hydrogen player by 2030.

Further displaying its commitment, the Federal Government recently invested $300 million into the nation’s emerging hydrogen industry.

“With the Federal Government also committed to this sector, we believe our investment and commitment to these scoping studies is appropriately timed and we see enormous potential to develop a hydrogen industry in Australia,” Managing Director Scott Brown said.

Hydrogen is high energy fuel that can be burned without carbon dioxide emissions. The market is expected to grow rapidly as hydrogen will likely be used in transport. Recently Toyota, Hyundai, Honda and Audi, have either released models or are planning to release models that are powered by hydrogen fuel cells.

Real Energy’s new subsidiary, Pure Hydrogen, has already considered two potential sites in Queensland to establish a large-scale hydrogen fuel plant with a minimum annual production capacity of 36 million kilograms.

A plant of this size has the ability to power 240,000 hydrogen-fuelled Hyundai Nexo cars for one year.

The potential project sites are adjacent to the company’s 50 per cent-owned Project Venus CSG project in the Surat Basin, as well as another site near Gladstone.

In addition to the scoping studies, Real Energy will assess whether it’s eligible for government funding.

Company shares are up 9.52 per cent and are trading for 2.3 cents each at 3:48 pm AEST.

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