The QEM Ltd (ASX: QEM) share price is racing 5% higher today following a collaboration with DNV Australia. Here’s what the company said.
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The QEM Ltd (ASX: QEM) share price is in the green during early-afternoon trade following a collaboration with DNV Australia. At the time of writing, the liquid fuels producer’s shares are swapping hands for 19 cents.
Independent expert in risk management and assurance, DNV operates in more than 100 countries. The company specialises in advisory, monitoring, verification, and certification services across the entire energy value chain.
What did QEM announce?
Investors appear excited about the company’s prospects, pushing the QEM share price higher.
In its announcement, QEM advised that it has engaged DNV to undertake a pre-feasibility study into power generation from solar and wind farms. This forms part of the company’s broader assessment in progressing studies into producing green hydrogen at its Julia Creek project.
The pre-feasibility study will cover solar farm resource mapping and modelling, as well as a preliminary solar photovoltaic (solar PV) system design. Furthermore, DNV will develop a preliminary wind turbine layout to gain a better understanding of wind farm resource mapping and modelling.
The study will look at how well both solar and wind farms work together in creating potential renewable energy sources. This is expected to feed into the company’s electrolyser to produce hydrogen.
The pre-feasibility study is due to be finalised before the end of the second quarter. DNV will then move on to undertaking more definitive wind resource measurements and solar resource monitoring during the third quarter.
QEM managing director, Gavin Loyden touched on the company’s green hydrogen strategy, saying:
Engaging DNV demonstrates that we are swiftly laying the foundations for green hydrogen opportunities at Julia Creek.
The Julia Creek site receives significant sun exposure and DNV has already noted that the site is substantially flat, which bodes well for installation of wind power generation.
Importantly, advancing our green hydrogen strategy will enhance the development of our flagship Julia Creek vanadium and oil shale project.
About the share price
The QEM share price has accelerated over 160% in the last 12 months, with most of the gains coming from year-to-date. The company’s shares reached an all-time high of 34 cents late March before profit-taking took place.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.