Update on EXR’s green hydrogen project

Published 11-MAY-2023 13:54 P.M.

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Our 2019 Energy Pick of the Year, Elixir Energy (ASX:EXR) just released a new investor presentation focused primarily on its green hydrogen project in Mongolia.

Here are the slides we found most interesting in the presentation:

1. Regional infrastructure & Chinese energy demand -

One of the key differentiating factors for EXR’s green hydrogen project is that it sits right near the Chinese border.

China is one of the world's most energy hungry countries and the country's long-term plan to diversify away from fossil fuels into cleaner energy sources means projects like EXR’s could become of strategic importance.

The typical issue for green hydrogen projects is transportation would become less of an issue for EXR with the build out of regional hydrogen pipeline transmission networks already emerging.

Below is the slide highlighting EXR’s geographic advantages & the regional infrastructure:

2. Strong renewable energy supply-

Green hydrogen projects require strong renewable energy supplies - EXR’s project has some of the strongest wind and solar utilisation rates of projects all over the world.

The table below shows that EXR’s renewable energy capacity factors relative to other projects from China, Australia and Chile.

3. PFS being used as a framework for 50/50 Joint Venture negotiations -

EXR had previously mentioned the PFS had been completed but gave a little more detail on the study today.

The key takeaway for us is that EXR’s PFS was completed and was obviously strong enough to warrant its MOU with a joint venture partner to be expanded into a Term Sheet”.