PERTH (miningweekly.com) – The share price of junior explorer QEM increased by some 10c a share on Monday after the company announced intensions to pursue a green hydrogen strategy.
QEM on Monday told shareholders that it had started studies into green hydrogen opportunities at its flagship Julia Creek vanadium and oil shale project, in North Queensland.
The studies will investigate the financial and regulatory requirements to produce hydrogen on site at Julia Creek using solar-powered electrolysers. The company said that the hydrogen would initially be used to support the energy needs of other resource projects in the North West minerals province, but would ultimately be used for the hydrogenation of the company’s raw oil into transport fuels.
“The commissioning of these studies will lay the groundwork to advance our green hydrogen strategy at Julia Creek, amid increasingly buoyant market conditions and the project’s optimal location and resource profile to produce hydrogen on-site,” said QEM MD Gavin Loyden.
“Crucially, the hydrogen strategy aligns with the broader strategic direction of Julia Creek, as QEM looks to target both the liquid fuels and renewable energy sectors.”
“We remain committed to continuing the development of Julia Creek to unlock the substantial latent value the vanadium and oil project possesses,” he added.
The project currently has a Joint Ore Reserves Committee-compliant vanadium resource of 2.7-million tonnes, with a vanadium oxide content of 0.30%, and a 3C contingent oil resource of 783-million barrels of oil.
QEM shares closed at a price of 18c each on Monday, up from a closing price of 8c a share on March 12.