Update on MOU with Softbank’s energy subsidiary

This morning our 2019 energy Pick Of The Year, Elixir Energy (ASX: EXR) put out an update on its MOU with a subsidiary of Japanese Conglomerate Softbank - SB Energy Corp (SBE).

Below are some of the key takeaways from the update:

• SBE is investigating potential sources of Japanese Government fiscal support - Earlier today, we put out another Quick Take about the Japanese plans for Mongolia, which ties in nicely with this point.
• Data acquisition ongoing - SBE and EXR are progressing data acquisition (water/renewable energy) to put out some details on potential project scale/economics.
  
• Pre-feasibility study (PFS) for the pilot plant commenced.
  
• Customer discussions ongoing - SBE is leading talks with potential hydrogen customers in China and Mongolia.
  
• The site location for the pilot plant is currently being evaluated.

We especially like that the update shows both partners are working towards the same goal. Whilst EXR is busy on the ground gathering data, SBE is busy progressing the project at the corporate level.

We are particularly interested in whatever comes from the investigations into potential financial support from the Japanese Government, especially after doing a deep dive on the idea of an Asian super grid (see our Quick Take here).