Posted on 30 Aug 2024
Australia-listed Province Resources has scrapped plans for a 550,000-tonne-per-year green hydrogen project in Western Australia, citing a lack of support from the regional government.
The so-called HyEnergy project, in the Gascoyne region of Western Australia, would have seen the installation of 12 gigawatts of wind and solar power. In an update to the Australian Securities Exchange (ASX) this week, the former mining company said it had completed all works directly under its control.
These include a scoping study, pre-feasibility studies, land agreements with pastoralists, and environmental studies – all completed under the understanding that the state government would grant “timely and appropriate” land tenure for the project.
However, the state government did not offer tenure on terms that would be “acceptable” to Province and its potential project partners, the company claims.
“Due to the excessive amount of time taken by the state government to consider appropriate tenure for the HyEnergy project, the initial opportunity to advance the HyEnergy project has been lost,” Province notes. “These time delays have seen a significant reduction in investor interest in the sector and, ultimately, resulted in many companies deferring their plans to develop their green energy projects.”
Nonetheless, the company reiterated the “long-term prospects” of green hydrogen, hoping market and investor interest in the sector will return. It will continue to seek the government’s support for the project’s development in the future. The company adds the project is in a “state of readiness for the next permissive global/local renewable hydrogen demand and development cycle.”
“It is disappointing that the state government would be the sole stakeholder who was not supportive of the project,” says Province ceo David Frances. “This is in direct contrast with the government’s public statements of support for the industry.”
Kallanish Power Materials understands the company is now seeking to relist by returning to minerals and development, and as such, has been reviewing several mineral exploration projects.
“In the interest of shareholders, we will also seek a solution for the company’s securities to be tradeable once again,” the ceo adds.
In 2022, French renewable energy developer Total Eren, a subsidiary of TotalEnergies, had agreed to develop the HyEnergy project with Province. However, it exited the project last year, citing differences in the project objectives of the two companies.
Province was previously known as ScandiVanadium, after its former flagship project in Sweden. The company also has a nickel-copper project in Western Australia.
Source:Kallanish Power Materials
