Good questions from Ollifun on INVESTOR HUB: (I know...

Good questions from Ollifun on INVESTOR HUB: (I know him)

Ollifun

07:13AM 05/09/2024

Congratulations on yesterday's announcement regarding the expansion of by-products.

It would be nice if you could explain the importance of these by-products to shareholders in more detail. Why are hydrochloric acid (HCl), caustic soda (NaOH) and sulfuric acid so important for the chemical or other industries?

Why will the importance of these products possibly even increase in the future?

How big is the market for this product?

What potential share could Parkway have in monetary terms?

Additional question: why is it currently not financially attractive for Parkway to treat the brine produced during seawater desalination? When could this change?

Parkway Corporate

ASX:PWN

07:38AM 05/09/2024

Hi Ollifun, thanks for your feedback and questions.

The markets for the industrial chemical products we plan to produce far exceeds the output from the envisaged Master Plan related strategies. Importantly, in the case of caustic soda (most valuable product), more than 1MTpa is imported into the Gladstone region, therefore being able to displace this expensive black caustic, with more competitive green caustic, is an exciting opportunity. Given we are in discussions with various downstream partners, including potential offtakers, we haven't provided specific market related info, publicly, but this is an area we understand well. We have performed various market studies, including as part of feasibility studies with major companies, including the largest CSG operator.

In terms of desalination, given the value of produced water is so low (typically <$1/m3 at an industrial scale), and the general waste (brine) ratio to product (water) is 1:1, there is limited scope for a desalination plant operator to spend opex that exceeds the value of the product. In time, as wastewater disposal regulations tighten up, as they are in many regions, this will change, but in the meantime, there are markets that are attractive today, and therefore this is where we are focusing our energies.

A key takeaway from our announcement is that Parkway is focused on a diverse range of opportunities which we are pursuing in parallel, which is an important derisking exercise and ensures we can control our own destiny as a company.

Kind Regards,

Parkway