NRZ to produce hydrogen in China
NeuRizer Ltd (NRZ) has signed an agreement with Meijin Energy Investment Co., Ltd. (MEI), to produce hydrogen in China through in situ gasification (ISG).
MEI is a subsidiary of the Meijin Group which is the largest integrated hydrogen company in China and it already constructs hydrogen vehicles, hydrogen fuels, and is the owner of hydrogen charging stations. This provides NRZ with a major advantage in meeting the needs of a developing hydrogen fuel market in China.
China is the largest producer of hydrogen today, at about 25 million t, or roughly a quarter of the global total. Most of the volume is produced from fossil fuels (60% from coal, and 25% from natural gas) as feedstock in refineries or chemical plants.
NRZ successfully produced significant quantities of hydrogen at Leigh Creek during the pre-commercial demonstration phase. The NRZ project at Leigh Creek demonstrated that NRZ has the ability to produce over 200 000 000 kg of low-cost hydrogen per year. In terms of quantity and cost of hydrogen, these numbers were confirmed for production of up to 200 000 000 kg per year at Leigh Creek at less than AUD$1/kg. It is expected to replicate these volumes and prices in China. In China, hydrogen production costs between AUD$3 – 5/kg and retail for hydrogen varies between AUD$7 – 10/kg, providing NRZ with a huge cost advantage.
NRZ will initially provide service to Meijin through a detailed assessment of 2 sites owned by Meijin. Following the site assessment NRZ will provide intellectual property and be the operator at ISG sites under the licencing agreement.
MEI will pay NRZ US$25 million per site as the licence fee. Both NRZ and MEI will become joint venture (JV) partners at those two sites in China. The contract will provide NRZ with the opportunity to participate in the rapidly developing hydrogen market in China.
China aims to bring 50 000 hydrogen fuel cell vehicles to the road by 2025 and to build a number of hydrogen refuelling stations. The plan targets hydrogen production using renewable feedstock resources to reach 100 000 – 200 000 tpy by 2025.
