Lion Energy (ASX:LIO) has signed a lease agreement with the Port of Brisbane for a long-term lease of land to build and operate a hydrogen generation and refuelling hub.
The hub is focused on supplying hydrogen to domestic public bus fleets, truck feets, and fuel cell gensets for the construction and mining industry.
Lion Energy, which has a market capitalisation of $11.36 million, says the 10-year agreement is the first of a proposed network of hydrogen refuelling depots across eastern Australia.
The company has undertaken due diligence on the site, including proximity to target markets.
Executive Chairman Tom Soulsby says the Port of Brisbane is a highly strategic location due to its proximity to the majority of Brisbane’s bus depots and heavy vehicle traffic to and from the port.
“Our site will initially produce and dispense some 420 kilograms of green hydrogen per day, but with the ability to quickly double production to respond to increasing demand,” Soulsby says.
“Diesel powered public bus fleets are being phased out across Australia with legislation supporting the shift to low emission transportation.
“Fuel cell powered vehicles will play a substantial role in the replacement of the existing bus fleets and Lion is thrilled to be a first mover in the Hydrogen refuelling space with the establishment of a landmark facility at the Port of Brisbane.”
Lion is also working with the Port of Brisbane to investigate a potential investment into solar energy supply at the port, which offers substantial potential rooftop solar capacity.
The Brisbane facility will include all equipment required to generate and dispense green hydrogen, as well as the ability to load compressed hydrogen onto tube trailers for transportation to other sites, spokes, or depots.
Lion has procured key equipment, including electrolysers, compressors, and the dispensing package. Based on the current schedule, Lion expects to start construction in the third quarter of 2024, with commissioning of the facility by the end of 2024.
The Port of Brisbane is Australia’s third largest and fastest-growing multi-cargo port, and Queensland’s largest general cargo port.
The Port of Brisbane is Australia’s third largest and fastest growing multi-cargo port, and Queensland’s largest general cargo port. It handles some $55 billion worth of international cargo each year, equivalent to approximately 32 million tonnes and supplied by 5 million annual truck movements, which is expected to reach 14 million by 2040.
The port handles about 95% of Queensland’s containers and 95% of all motor vehicles imported into the state.
Lion Energy is focused on securing the future with green hydrogen and positioning itself as an early mover in Australia’s zero carbon hydrogen production.
Write to Aaliyah Rogan at Mining.com.au
Images: Port of Brisbane
