PRL has no experience whatsoever in the energy business or even any experience as a profitable company. It has never made a profit.
- No, PRL is not a company that was known for being in the energy sector and this is why they're now entered into an MoU with Total Eren, who themselves are conducting feasibility and scoping studies to establish what needs to be achieved next and are a huge player in the energy market. I agree that this project is fuelled with speculation, however, prior to this, they were an exploration company, which meant they knew land value when they saw it. They've picked one of the best locations for renewable energy sources with the Carnarvon experiencing one of the highest wind rates in WA and constant exposure to the sun, with very little interference of human settlement. Therefore I don't believe you can suggest that they have zero experience in what they are doing, due to the speed and clever locations they've managed to establish. They clearly have a solid management team behind them to establish agreements that will allow them to become profitable in the future.
There is no established market for the ammonia they would produce at the quantities and price it would be produced at. With present technology, green ammonia cannot compete on price with ammonia hydrogen, and the amount of ammonia which they are talking about producing is more than 10% of the global supply, which would act to substantially impact on the ammonia market price, to their detriment.
In terms of technology and profitability, you are looking at this through the idea of being established 'now' rather than '5-10 years'. The amount of uses that Hydrogen has is unthinkable but right now we are being hindered in our research due to the massive conglomerate that is fossil fuels. Ammonia is already established as a great resource but hydrogen is better and less harmful to us as a planet. The whole point of this project is to target the market early and become the major player as a Green Energy supplier, a market that is picking up speed every day. Companies are gradually increasing funding and momentum for uses of hydrogen and helping create feasibility and technology to reduce the price of production. GEV is establishing a 5-year timeline to produce hydrogen shipping based out of WA. Japan is aiming to use a large percentage of hydrogen in the next 30 years with a huge push in the car market to create more the 200,000 fuel cell vehicles by 2025. Hydrogen use is also being pushed to replace natural gas, with California beginning the move to introduce a mix of natural gas and hydrogen to supply everyday appliances. Hydrogen has its market but it needs to be established first.
As a company, I'm waiting for the studies to be released to see where this moves but I am 100% holding and hoping for the best. However, as a long-term hold, I know we may not see the potential of this project for a couple of years to come.
If you'd like some reading too, let me know but I've noticed that links in Hotcopper rarely work. As always though DYOR
Expand
(20min delay)