Prominence Energy is investing in an Australian based hydrogen business stream to complement oil and gas activities.
PRM has signed a binding term sheet to acquire 20% of Patriot Hydrogen for a consideration of 25 million PRM shares, $250,000, and 3 million PRMOB options. Patriot initially intends to construct a Biomass to Hydrogen plant at Port Anthony in Victoria where Patriot already holds a binding term sheet for the site lease and construction of the plant.
The plant is anticipated to take 12 months to be planned, constructed commissioned and reach steady state production of 2 tonnes of hydrogen per day. PRM’s $250,00 investment will primarily be used to complete the planning and design of the project. Patriot is in discussions regarding opportunities to expand capacity and to add additional sites for Patriot Biomass to hydrogen units.
PRM believes that oil and gas companies need to evolve to be more carbon friendly in order to stay attractive to modern investors. The Patriot investment is seen as an attractive entry position into the green hydrogen sector. PRM believes that, as the Patriot biomass to hydrogen production units are modest in size and can be placed close to the end users, this will bypass some of the infrastructure challenges associated with the sale and use of hydrogen.
The ability to produce low carbon onsite power generation and hydrogen offers the potential for long term expansion opportunities with units at numerous locations, such as bus ports for hydrogen use, and industrial sites that use power and have biomass waste such as sawmills, refuge centres and agriculture businesses.