The QEM Ltd (ASX: QEM) share price shot up by a mammoth 95% to 15 cents on opening today after the company announced its plans to pursue hydrogen energy.
The exploration and development company advised today it has begun studies into 'green' hydrogen opportunities at its Julia Creek Project in North Queensland.
The QEM share price is up 119%, trading at 18 cents at the time of writing after hitting an intraday high of 19.5 cents.
What did QEM announce?
QEM announced it was looking into the financial and regulatory requirements of producing 'green' hydrogen at Julia Creek using a solar-powered electrolyser.
Hydrogen is considered green if renewable energy is used to generate the electricity needed for its production.
The company believes that the hydrogen from its Julia Creek project could be used for the hydrogenation of its raw oil, creating more sustainable transport fuels. Further, the project's location is ideal for the company to provide hydrogen power to other resource projects in Queensland's north-west.
QEM also noted trucks and trains travelling through Queensland often needed to refuel in Julia Creek. As hydrogen-powered vehicle technology becomes more common, the project may serve as a vital component of Queensland's transport industry.
Currently, the Julia Creek Project is one of the world's largest single oil shale and vanadium deposits.
QEM is set to begin an approval process with the Queensland Government to provide water to the potential development.
Commentary from management
QEM managing director Gavin Loyden said the project's location and resource profile was "optimal" for producing hydrogen on-site.
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.
We remain committed to continuing the development of Julia Creek to unlock the substantial latent value the vanadium and oil shale project possesses.
QEM share price snapshot
The QEM share price opened at 15 cents this morning, up 95% from Friday's close of 0.08 cents.
QEM has a market capitalisation of approximately $8 million with 100 million shares outstanding.
