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Blue Energy and Stanmore Resources sign MoU for hydrogen offtake

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World Coal,

Blue Energy Ltd has announced that it has executed a non-binding memorandum of understanding (MoU) with Stanmore Resources Ltd to supply hydrogen from its future pilot production activities in its ATP 814 tenement in the Bowen Basin. This latest agreement comes after Blue Energy and Stanmore previously announced a non-binding MoU for the commercialisation of mine gas from Stanmore’s proposed underground operation adjacent to ATP 814.

Blue is investigating the potential for conversion of pre-development gas production, from pilot gas well operations, to hydrogen supply to Stanmore’s Isaac Plain Complex equipment fleet. The gas used by Blue for conversion to hydrogen will be pilot gas which would otherwise be flared, and this trial project will reduce greenhouse gas emissions from Blue’s activities and also reduce diesel fuel usage by Stanmore, which in turn reduces the carbon dioxide produced by the combustion cycle of their fleet of vehicles.

Blue is currently investigating off the shelf modular hydrogen generation equipment that is portable and able to be installed either centrally or at the well head, with the hydrogen generated transported in purpose-built cylinders to Stanmore’s Isaac Plains Complex for use in their vehicle fleet.

Blue Energy’s Managing Director, John Phillips, commented: “Being able to avoid flaring of pilot gas production by converting it to hydrogen is a step forward in reducing emissions prior to gas developments, and in this case has the added bonus of also lowering emissions from neighbouring mining operations.

Blue is in the process of establishing technology partners for this hydrogen trial, and now with a foundation hydrogen offtaker secured, is confident the use of Blue Hydrogen from its pre-development activities is a positive step toward lowering the greenhouse gas emission footprint of the Bowen Basin Coal mining precinct.

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