"The government is investing $464 million in hydrogen hubs as part of its $1.2 billion commitment towards building a hydrogen industry. Hubs are critical to helping Australian industry produce hydrogen at under
$2 a kilogram (‘H2 under 2’
, a stretch goal of the Technology Investment Roadmap."
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The below are quotes from today's Ann.
"A char product containing
most of the incoming carbon (in solid form) COHgen technology, which represents a significant advancement on conventional hydrogen production methods,
featuring 70% lower CO2 emissions.....
Upon completion of the
initial stage of the project, this will see ECT become
Australia’s largest producer of agricultural char for soil health and soil CO2 sequestration, and a substantial manufacturer of hydrogen, formic acid and
emission-free electricity......
Energy and climate policy has finally
caught up to what we’ve been saying for several years, and the market is
starting to recognise the true potential for our technology suite.....
Over recent months, significant funding initiatives have been established across federal and state
governments in the form of grant or funding programs to help stimulate technology-driven climate transition
and activate nation-wide hydrogen industry development. The proposed Project is
aligned with several of these programs, for which ECT is currently preparing submissions, including......
Net-zero emission footprint for the
end-to-end process......
Net-zero emission dispatchable electricity, to support peak demand periods via gas turbine and
hydrogen fuel cells.. ..
conventional hydrogen production methods from lignite emit CO2, requiring significant carbon
capture and storage (CCS) to achieve the required low or zero-emission footprint........unlike other methods for deriving clean hydrogen from lignite, the
break-through net zero approach being adopted by the Project does not require CCS and the associated costs......
Eliminating Costly Carbon Capture and Storage (CCS)....
The Project steps outside the conventional CCS approach, adopting a carbon capture and utilisation route that delivers a
net-zero emission, revenue-generating alternative via a combination of.....
This combination circumvents the need for conventional CCS development and infrastructure, creating a circular outcome whereby ‘
waste’ from syngas production (char) is used to create a secondary product of value for agricultural and other applications"......
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We have been invested in ECT for 12 years This Ann is the best yet.
Firstly, what technology does the Govt want to support?
They are staking their hopes on low emission or net zero technologies. They want tech that provides the lowest possible net carbon, with the highest possible economically viable output of electricity generation, hydrogen, agriculture products etc - all at the lowest cost of tech implementation. Not asking much are they!! The private sector are desperately searching to do same.
Reading today's Ann, ECT are potentially
ticking many of those boxes. I follow Forest/Reinhards actions on energy. Forrest is 100% green hydrogen. He wouldn't consider ECT. No way. Gina imo would.
The Govt aim to "produce hydrogen at
under $2 a kilogram". Green hydrogen imo will never achieve that. Have a look at what Forrest is starting at Gladstone with his $1 billion electrolyser factory.
Long Long way to go. Have a look at the enormous burning of fossil fuels needed to
manufacture wind turbines/solar panels. The environmental destruction caused by manufacture of wind/solar is immense.
Imo the three main obstacles the Latrobe Valley World Class lignite resource faces are:
1/ Lignite drying. Despite 100's of millions of $ thrown at it over 30 years - an economic method of reducing moisture from 63% down to black coal equivalent ~12% is yet to be developed.
Coldry aims to be the first method. 25000 TPA plant to be commissioned early next year.
2/ Emissions. Carbon capture & storage (CCS) has a disastrous record. Extremely costly & as Forrest correctly points out "how do we know it won't leak". Kawasaki "might" get away with it as they are aiming at Bass strait which has some unusually good CCS destinations. But in general - CCS is
almost universally hated.
ECT are aiming to eliminate CCS by lignite drying & very interestingly forming
valuable "solid carbon" waste products which imo the greens/ farmers will quickly gravitate to. Hence Net Zero. At present LV lignite is hated by the green groups - but if ECT deliver, imo that will change. No CCS pipelines/reservoirs leaking, no wind/solar manufacture etc. ECT could be the ultimate crowd pleaser in this space
3/ Cost. The Government want hydrogen
under $2 a kilogram.
Compare cost of natural gas/black coal against lignite. I don't know the latest lignite prices but 8 years ago it was ~$6 a tonne. Imo $2 a kilo hydrogen can
only be achieved via lignite. Also, the vast LV resource has & will likely continue to have very
stable pricing. Coal/ natural gas are a roller coaster with less Capex likely meaning higher costs going forward.
In summery - fantastic Ann. If ECT get Govt funding - that will validate ECTs potential in many investors minds (including ESG, greens, ethical investors). No CCS - has to be a
crowd pleaser all round. Net Zero. We will increasingly hear those 2 words in the media/investment circles - ECT are very well positioned to win from that. The LV has 125,000 residents whom face economic ruin imo. If Coldry is commissioned successfully - I see the LV lignite resource supporting many different businesses.
But - ECT
must successfully commission Coldry early next year. Last week I was thinking $100m market cap max before commissioning. I might be happily wrong there. All imo
tick tock...
(20min delay)