- Elixir Energy (EXR) upgrades its partnership with SB Energy over the co-development of the Gobi H2 green hydrogen project in Mongolia
- The parties executed a term sheet, providing a pathway to a development agreement and 50/50 joint venture
- This builds on a memorandum of understanding signed in June, since which time the parties have carried out investigations into the potential of the project
- The parties are aiming for a front end engineering and design entry decision into a pilot project by mid-2023
- Elixir shares are trading at 14.5 cents at 2:00 pm AEDT
Elixir Energy (EXR) has upgraded its partnership with SB Energy over the co-development of the Gobi H2 green hydrogen project in Mongolia.
The parties executed a term sheet, with the purpose of providing the framework for a development agreement and a 50/50 joint venture.
This will be based on a front end engineering and design (FEED) entry decision for a green hydrogen pilot project. The companies aim to reach the FEED stage by the middle of this year.
The term sheet builds on a memorandum of understanding (MOU) entered back in June 2022 to progress investigations into the feasibility of the Gobi H2 project.
Since then, both EXR and SB Energy have carried out various investigations into the potential of the project, resulting in the decision to upgrade the partnership.
Elixir Managing Director Neil Young said the company was delighted with the progress of the Gobi H2 project and the maturing partnership with SB Energy.
“All the work we have done since the signing of last year’s MOU has supported our original thesis that the South Gobi region of Mongolia is a tier one location globally for green hydrogen production – and we are building significant first mover advantages here,” Mr Young said.
SB Energy has a renewable energy asset portfolio largely based in Japan as well as the 50 MW Tsetsii Wind Farm in the Gobi region of Mongolia.
Elixir shares were trading at 14.5 cents at 2:00 pm AEDT.