IRD advancing potential green hydrogen port opportunity

Published 27-JUL-2022 12:00 P.M.

2 min read

This morning, our Wise-Owl long-term iron ore investment Iron Road (ASX:IRD) announced that it had completed its market sounding process to discern commercial interest in the longer-term development of its Cape Hardy site as a green hydrogen hub/ industrial precinct.

A shortlist of 10 green hydrogen proponents - primarily comprising globally significant players in the power generation and emerging energy transition sectors - have expressed formal interest in developing Cape Hardy.

Location map

IRD will now enter discussions with these parties, with a view to enter commercial arrangements following the close of the expressions of interest phase during 4Q 2022.

The project also has strong government support. The South Australian Government recognises the opportunity, and the Federal Government has provided a $25m grant commitment to assist with development.

IRD fully owns the 1,200 hectare greenfield site at Cape Hardy, and has primary development approval for a high-grade iron concentrate and multi-commodity export facility. Besides the green hydrogen opportunity, Cape Hardy provides the logical logistical channel for IRD’s flagship asset, the Central Eyre Iron Project (CEIP).

IRD has been progressing the CEIP since 2008 through to DFS, having spent approximately $180M in the process. The project hosts Australia’s largest undeveloped magnetite deposit, with a 3.7 billion tonne Ore Reserve, capable of producing 589Mt of high-grade magnetite (66.7% Fe) over the life of the mine. As it typically takes decades to progress significant iron ore projects to development, we believe IRD’s flagship represents one of the next significant iron ore projects globally to next transition into production.