Lion Partner With DGA, Samsung On Hydrogen Project

ASX-listed Lion Energy has entered into a definitive joint development agreement with Mitsubishi Corporation subsidiary DGA Energy Solutions Australia and Samsung C&T Corporation to jointly develop its green hydrogen hub at Port of Brisbane.

Under the agreement, DGA and Samsung C&T will initially pay a total of A$3.7m to Lion for historical and ongoing pre-construction costs. In return, DGA and Samsung C&T will each become entitled to 25 per cent interest in the project.

Subsequently, upon the parties agreeing to start construction, DGA and Samsung will procure debt financing of A$6.3 million. The overall funding commitment associated with the joint development agreement is expected to cover the capital requirement to complete the project.

The project consists of green hydrogen production and dispensing infrastructure at Port of Brisbane, with total production capacity of more than 300 tonnes per annum (see image of approved development plan above).

As previously announced, Lion has already obtained relevant government approvals for the project and has signed a 10-plus-10-year lease with Port of Brisbane.

It has already entered procurement agreements with key equipment providers which has enabled the company to secure the supply of two electrolysers and a refuelling package. Two hydrogen tube trailers have already been secured and are being leased to third parties at commercial rates until required.

The companies believe the Port of Brisbane project is likely to create a blueprint for other green hydrogen hub/spoke supply facilities across eastern Australia. Ultimately, Lion aims to become a key player in assisting the heavy mobility transportation industry in the push towards zero-emissions.

“We are delighted to partner with DGA and Samsung, who bring to the project a wealth of experience in their respective fields,” Lion’s Executive Chairman Tom Soulsby says.

“Their interest reflects a confidence not only in the significant potential for green hydrogen in Australia but also in Lion’s capabilities.

“For Lion, the transaction results in the project being funded and will allow us to allocate existing and future capital for new projects.”

Soulsby adds that there has been strong interest in hydrogen offtake from the project.

“We are now quite confident that our initial markets for our green hydrogen production will be the displacement of grey hydrogen to green hydrogen for industrial customers, fuel cell gensets (which displace oversized and inefficient diesel gensets at construction, mining and event sites) and heavy mobility players such as bus operators and truck fleet managers,” he says.

“We expect to update the market on offtake agreements in Q3 2024.”