Elixir Energy signs MoU for Gobi H2 green hydrogen project in Mongolia

Wide shot of sandy dunes in Gobi Desert, Mongolia, with blue sky above (Elixir)
Gobi region, Mongolia (Image: Shutterstock)

Australian oil and gas exploration and development company Elixir Energy has signed a memorandum of understanding (MoU) with the Mongolia Green Finance Corporate for a proposed green hydrogen project called Gobi H2.

“Elixir’s hydrogen strategy rests on the view that the Gobi region of Mongolia is one the of best locations in the world for exporting green hydrogen, given its renewable resources and immediate proximity to likely hydrogen markets,” the company said in a statement.

Elixir and the Mongolia Green Finance Corporation (MGFC) will cooperate on identifying Mongolian carbon offset opportunities at the household level; developing larger scale forestry/nature related offsets in Mongolia; and working with International Financial Institutions (IFIs) over the project financing of Elixir’s proposed green hydrogen pilot production plant.

According to Elixir, while water is not a large part of the cost structures of producing green hydrogen, it is a vital input and the social issues surrounding it are a key priority for the company. Elixir’s CBM business, where producing water is a necessary part of gas production from coal seams, provides complementary areas of expertise and even potential H2O feedstock for the Gobi H2 project.

Related article: Hexagon and FRV sign MoU for clean hydrogen hub

Elixir and Erdene have recently formalised their relationship over procuring water for hydrogen through an Agreement for the provision of water advisory services. The parties are currently planning field based water exploration and appraisal activities for later in the year.

Other than water, the other key input for a green hydrogen project is high quality renewable power sources. On this front, Elixir is currently:

  • Measuring wind and solar resources to a bankable standard through its Australian sourced SODAR unit imported to the country last year and deployed in the South Gobi region.
  • Importing a solar focused measurement tool (from the same Australian firm who supplied the SODAR—Fulcrum3D) to be deployed at its recently acquired Solar Ilch solar farm.

Elixir managing director Neil Young said, “All the work we are doing on our Gobi H2 project serves to reinforce our original starting concept: the country is a potential tier one location for large scale hydrogen exports. Elixir’s first mover advantages are being progressively locked in and it is fantastic to see the rapidly growing interest in this future facing industry from multiple local and international stakeholders.”

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