PRL has not released any project economics to the market yet. However, we previously estimated that PRL’s project could cost around A$29BN for both the upstream renewable power generation and downstream hydrogen production.
These were our own estimates based on other projects of a similar size and nature around the world, and don’t take into account any technological advancements over the coming years.
PRL is a $46M capped company and to secure the billions of dollars of funding required it will need to find project partners prepared to invest this kind of capital into the project.
PRL can mitigate this risk by finding a larger project partner and progressing its feasibility studies to provide with more certainty the economics of the project.
What we want to see is for PRL to farm down parts of the project ownership to funding and development partners, and PRL ends up holding a free carried percentage of the total project.
The risk is that PRL won’t be able to find and sign on a suitable partner/s.