Blue Energy Ltd says it has executed a non-binding memorandum of understanding (MoU) with Stanmore Resources Ltd that could see mine gas converted to hydrogen to power Stanmore’s Isaac Plains Complex equipment fleet.

The latest MoU relates to future pilot production activities at Stanmore’s ATP 814 tenement in the Bowen Basin of Queensland, Australia, but it builds on a previously announced non-binding MoU for the commercialisation of mine gas from Stanmore’s proposed underground operation adjacent to ATP814.

The gas used by Blue for conversion to hydrogen will be pilot gas which would otherwise be flared, and this trial project will reduce greenhouse gas emissions from Blue’s activities and also reduce diesel fuel usage by Stanmore which, in turn, reduces the CO2 produced by the combustion cycle of their fleet of vehicles, Blue said. The company is currently investigating off-the-shelf modular hydrogen generation equipment that is portable and able to be installed either centrally or at the well head, with the hydrogen generated transported in purpose-built cylinders to Stanmore’s Isaac Plains Complex site for use in their vehicle fleet.

Blue Energy’s Managing Director, John Phillips, said: “Being able to avoid flaring of pilot gas production by converting it to hydrogen is a step forward in reducing emissions prior to gas developments, and, in this case, has the added bonus of also lowering emissions from neighbouring mining operations.”

Blue is in the process of establishing technology partners for this hydrogen trial and, now with a foundation hydrogen offtaker secured, is confident the use of blue hydrogen from its pre-development activities is a positive step toward lowering the greenhouse gas emission footprint of the Bowen Basin coal mining precinct.