Two ANN this week. First is the granting of first set of approvals for the 98.6 sq km site north of Carnarvon where the HyEnrgy project is planned to be built. In reality, it's a fomrality in the path towards conducting the overall feasability studies required, but none the less good to see progress.

HIGHLIGHTS

• Section 91 Licence granted over Town Common land near Carnarvon

• Approval allows environmental and other on-ground project studies to commence on site which covers almost 100 sq km

• Province is working with Traditional Owners, Western Australian Government, and Pastoralists on further land access approvals

Second from GEV who PRL have an MOU to ship the HyEnergy compressed H2 internationally with. They have secured some gov funding to assist feasibility studies. This relates directly to Province as it further demonstrates the ability if the project to attain government funding & further down the track a low cost of capital IMO.

HIGHLIGHTS
• GEV has secured funding support to evaluate the technical & commercial feasibility of exporting green 
hydrogen from the Gascoyne to Asia-Pacific utilising its compressed hydrogen shipping solution.
• Provision of funding will be made by the WA Government in accordance with the WA Renewable 
Hydrogen Fund Round 2.
• Funding will be applied to the Feasibility Study for the HyEnergy Project located in the Gascoyne 
region of WA (announced on 9 August 2021).
• Recognition from the WA Government is further validation of GEV’s compressed shipping solution and 
its ability to unlock the potential of green hydrogen exports.

In total, two minor steps in the process towards determing the feasibility of the HyEnergy project. Steps along the way, none the less.

Reply to @chagsy

They have recently signed an MoU with Global Energy Ventures, who are undertaking a study  at their own cost in which:

'scope includes transmission from 
the onshore hydrogen gas production facility to an offshore ship loading buoy and then on 
to nominated Asia-Pacific markets utilising GEV’s compressed hydrogen shipping solution'

So my understanding is piped to 'offshore shiploading bouys which will be in proximity to Carnarvon. From what I gather, full port infrastructure not required as no container loading etc is required. 

There are no doubts, in my mind at least that a third party will step up & build the infrastructure off their own volition. Have a look at the tenement FMG have pegged surrounding Province. Is there any doubt Andrew Forrest has the will or the means to make FMG's venture happen? If not, they will also need loading facility for export. The demand will be there.

Quick note on what I percieve to be the MOAT for province. Not often in a resource bus a mote can be claimed, apart from through sheer size & cost efficiency (rio/bhp with IO) or by simple straddling of supply (China in RE's).

I beleive Province do have a MOAT in the form of being first mover in the Green Hydrogen space. This is eveident in the ability of managment to lock in MOU with the local authorities. Lock in MOU with worlds largest renewable energy developer & lock in the prime real estate in the country (look no further than FMG pegging a tenement of land all around Provinces).

The HyEnergy project could move very quickly due to a few reasons;

• They are not a 'mining' operation, and as such, do not require any mining permitting (read, years of sandbagging)
• They have a quality team & board, with high profile members (some of same players as Vulcan Energy)
• Government eagerness to appear to be moving towards 'net zero carbon' & to stimulate industry/economy in area (The Regional 
  Centres Development Plan) etc

In short, i beleive Province have a massive advantage, equating to a MOAT of sorts, as first mover in the ability to lock up key land, attract funds, offtakes parterns & government support to bring this project into production.

Province resources is involved in the The HyEnergy Green Hydrogen Project, located in Canarvon, WA.  Province has signed a binding 12-month MoU with Total Eren for a feasibility study into development of an 8GW Renewable power facility & 50:50 development of a downstream hydrogen facility.

Province are attempting to become Australia’s first green hydrogen producer, by harnessing 100% renewable energy to produce hydrogen through electrolysis to feed into gas pipeline and export to overseas markets. The WA Hydrogen Strategy to support renewable hydrogen industry has a target of 10% mix of renewable hydrogen in the Dampier/Bunbury gas pipeline by 2030. Province are frontrunners to supply.

Province’s joint venture partner Total Eren are in the process of a Scoping study on the tenement to investigate the suitability of the site to produce renewable energy as per MOU. This is being 100% funded by Total Eren (One of worlds largest renewable nergy co's)

Why Canarvon?

• In WA, one of the top 5 most friendly mining/energy jurisdictions worldwide
•   It is a flat area, with low intensity of land use
•   Adequate road infrastructure (nearby highway)
•  Fourth windiest spot in WA, only one suitable for industrial development
•  Very high irradiance (sun shines hard & often), important for the solar generation requirements.
•  high geothermal potential in the Carnarvon Basin
•  Close to ocean, important as an endless supply of water for the electrolysis process & access to ports for the future export of hydrogen to south east Asian markets.
• Close proximity to the Dampier/Bunbury gas pipeline, important for distribution 
• Province have signed an MOU with Carnarvon shire for to collaborate & cooperate on the project.

Capex will be very high for this project. All in full costing estimation looking to be in ballpark of $14b, which includes Total Eren contribution. This number will change and narrow in on more reliable figure as the feasibility studies are conducted, government incentives and tax/royalty structures are finalised.

Scott Morrison has professed the governments desire to make Australia the ‘Hydrogen hub’ of the world. As such, I expect project such as HyEnergy to have access to grants/funding and have favourable treatment through permitting process and taxation/royalties (discussed by MD David Frances). 

Province have around $23m cash at bank. Some current funding pools they may seek to access;

• Western Australian Renewable Hydrogen Strategy $10m,  
• Australian Renewable Energy Agency (ARENA) $70m,
• Australian Government Advancing Hydrogen Fund $300m.

A quick search will show globally, the flood of money from governments, pensions, ESG funds etc flowing towards renewable projects. Should the scoping studies be positive, HyEnergy will not have an issue with funding.
 

In short, the world is turning to green energy. The australian government is throwing it backing behind hydrogen. Province have the best land, in the bet jurisdiction in Australia to do business. They have the backing of Total Eren, who are spening big on renewable energy generation and gone 50:50 in the development. I believe Province have first mover advantage, which will attract the money required. Will post more thoughts on people, MOU's etc in future.