Elixir, SB Energy to advance Mongolian hydrogen project
SUMMARY
The parties aim to reach this FEED stage by the middle of this year.
By Shardul SharmaSydney-listed Elixir Energy has executed a term sheet with SB Energy (SBE), a unit of Japan’s Softbank, over the development of the Gobi H2 green hydrogen project located in the South Gobi region of Mongolia, it said on February 20.
The term sheet builds on the memorandum of understanding signed by the parties in June 2022 to progress investigations into the feasibility of the Gobi H2 project.
“Since then the various investigations carried out by Elixir and SBE into the potential of the project have progressed as planned - to the point that the two parties have now agreed to upgrade their partnership through the execution of the term sheet,” Elixir said.
The key purpose of the term sheet is to provide an exclusive framework for the two parties to advance towards entering into a formal joint development agreement and a 50/50 joint venture upon the making of a FEED entry decision for a green hydrogen pilot project.
The parties aim to reach this FEED stage by the middle of this year. SBE has a renewable energy asset portfolio largely based in Japan as well as the 50 MW Tsetsii wind farm located in the Gobi region of Mongolia.
Elixir’s managing director, Neil Young, said: “All the work we have done since the signing of last year’s MOU has supported our original thesis that the South Gobi region of Mongolia is a tier one location globally for green hydrogen production – and we are building significant first mover advantages here. We look forward to further progressing our partnership with SBE in the months ahead.”
Elixir has in January last year signed a memorandum of understanding with Mongolia Green Finance Corp to support project finance for Gobi H2 project.
The company owns the Nomgon IX coalbed methane project, which is located in the South Gobi region and considers potential synergies between its strategy of exploring natural gas and green hydrogen production-related opportunities.
