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QEM investigates green hydrogen potential at Julia Creek project

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QEM Ltd says it has commenced studies into ‘green hydrogen’ opportunities on site at its flagship 100%-owned Julia Creek vanadium and oil shale open-pit project in Queensland, Australia.

The studies will investigate the financial and regulatory requirements of the company to produce hydrogen on site at Julia Creek using a “green” solar-powered electrolyser. It is envisaged the hydrogen would initially be used as a support to the energy needs of other resources projects located in the North West Minerals Province of Queensland, but ultimately for the hydrogeneration of the company’s raw oil into transport fuels.

To assist in its assessment of capital and operating costs, the company has appointed E2C Advisory Pty Ltd. E2C previously assisted the company with the review of a processing technology using a hydrocarbon solution for oil shale extraction and have, QEM says, extensive experience in electrolysers used for hydrogen production.

QEM will commence discussions with the Queensland state government on progressing the approval process to access water resources for the potential development, focusing on securing the relevant approvals following the successful completion of the financial studies to be conducted by E2C.

Managing Director, Gavin Loyden, said the company was delighted to be working with experts who possess substantial expertise in the hydrogen field.

“The commissioning of these studies will lay the groundwork to advance our green hydrogen strategy at Julia Creek, amid increasingly buoyant market conditions and the project’s optimal location and resource profile to produce hydrogen on site,” he said.

“For example, the Queensland state government established a ministry for hydrogen in November 2020, as the state government seeks to encourage investment into the bourgeoning market. Crucially, the hydrogen strategy aligns with the broader strategic direction of Julia Creek, as QEM looks to target both the liquid fuels and renewable energy sectors.”

Julia Creek comes with a total JORC inferred resource of 2,760 Mt, and a JORC indicated area of 220 Mt that has an average vanadium oxide content of 0.3% and an oil component of 783 million barrels in the 3C category. QEM says it intends to pursue development of a standard open-pit mining method with a low strip ratio.

QEM selects Velseis for 2D seismic survey at Julia Creek

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Exploration company QEM says it has engaged Velseis Pty Ltd to carry out a 22 km 2D seismic programme for the project site at Julia Creek in Queensland’s resource rich, NW mining precinct.

QEM envisages the programme will commence on site within two months, subject to satisfactory weather conditions.

Velseis is an Australia seismic exploration company providing a fully integrated range of seismic technologies, according to QEM. “Velseis has built a reputation as the leading Australian contractor in this field, with over 25 years of experience throughout the Asia-Pacific region,” the company said, adding it provides contracting services for coal, mineral and hydrocarbon exploration.

QEM said the seismic programme will provide the information required to give greater certainty to the existing geological and resource models at Julia Creek. This information will also feed into future studies and mine design.

“Better understanding the location and type of any geological structures within the project area will also assist in the design of the company’s forthcoming drilling campaign, targeted for Q2 (June quarter) 2019,” it said.

QEM’s exploration tenements in the Julia Creek area form part of the vast Toolebuc Formation, recognised as one of the largest deposits of vanadium and oil shale in the world, according to the company.