The company has set up a subsidiary, Pure Hydrogen Corporation, to conduct a scoping study into the viability and development of a hydrogen plant.
Pure Hydrogen Corporation is targeting a plant that can initially produce 36 million kilograms of hydrogen a year and to put that into context the company said it would power 240,000 Hyundai Nexos for a year. The Nexo is a hydrogen fuel cell car.
Real Energy managing director Scott Brown said the board had been assessing its options for some time.
“The Queensland government has shown its commitment to supporting the development of large energy projects and this is also the case for renewable energy projects –the $2 billion lithium-ion battery cell factory in Townsville being developed by Imperium3 is one such example.
“With the Federal Government also committed to this sector, we believe our investment and commitment to these scoping studies is appropriately timed and we see enormous potential to develop a hydrogen industry in Australia.
“Whilst this is an excellent development for Real Energy, it in no way detracts from our efforts in advancing Project Venus and extracting value from our Windorah Gas Project.
The strategy followed a commitment from the Federal Government for $300 million in funding for Australia’s emerging hydrogen industry.
Real Energy said it had two sites earmarked.
One potential site is adjacent to Real Energy’s existing 50 per cent-owned Project Venus CSG project. Another site is near Gladstone.
The scoping studies will be undertaken by an experienced engineering consulting firm and a dedicated team that Pure Hydrogen Corporation will establish.
Hydrogen is high energy fuel that can be burned with no CO2emissions and although major advancements have been made it remains an expensive option. However, Toyota, Hyundai, Honda and Audi, have either released models or are planning to release models that are powered by hydrogen fuel cells.