Leigh Creek Energy has responded to federal government policy changes and widened the scope of its investigations into developing the Leigh Creek coalfield in South Australia to include the production of hydrogen.
The company has demonstrated in a pilot plant (pictured) the potential for in situ gasification (ISG) of coal, formerly used to generate electricity, at Leigh Creek in northern South Australia.
To date the company’s focus has been on gas production to use as feedstock for a new urea based fertiliser plant, but this has been extended to include the potential for hydrogen production, utilisation or export.
The federal government’s recently announced Advanced Hydrogen Fund opened the potential for $300 million in funding through the Clean Energy Finance Corporation for hydrogen projects produced from fossil fuels.
The company said: “This was an important change in the funding for hydrogen projects and was particularly relevant to LCK.
“We are now working on a submission to obtain funds for an ISG to hydrogen CO2 sequestration project at Leigh Creek.”
Leigh Creek said its previous studies had shown the Leigh Creek field could potentially produce 200,000,000 kg of hydrogen per annum and be a lowest-cost producer at less than $1 per kg.
Hydrogen is a gas produced on the pathway to urea manufacturing.
Picture: :Leigh Creek Energy
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