The QEM Ltd (ASX: QEM) share price is soaring today after the company updated the market on its Julia Creek vanadium and oil shale project's potential green hydrogen hub.
At the time of writing, the QEM share price is up 19.35%, with shares in the company trading for 18.5 cents apiece.
However, earlier today, shares in QEM were swapping hands for 25 cents – a whopping 56% higher than their previous close.
3.3 million shares in the company have swapped hands so far today. Let's take a look at the news driving the excitement for QEM shares.
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What's driving the QEM share price today?
Today's news from QEM regards its plans to create a green hydrogen hub in outback Queensland.
Green hydrogen is hydrogen created using renewable energy.
The company has received the first stage of its pre-feasibility study into the potential to generate electricity from solar and wind to power the project.
So far, it has found it can house a wind farm capable of producing 126 megawatts of electricity using 21 wind turbine generators.
Further studies will assess the site's wind speeds and other factors pertaining to the windfarm's viability.
The second stage of the QEM's pre-feasibility study is underway. It will investigate the additional possibility of creating a solar farm.
Additionally, a $1.5 billion high voltage transmission line named Copperstring 2.0 is being built between Townsville and Mount Isa. It will run within 10 kilometres of Julia Creek and will allow QEM's project access to Queensland's electricity grid.
A green future
QEM also announced the findings of a report by Siecap, a project management consultant engaged with QEM's project.
The report found global demand for green hydrogen will increase by 750% by 2050.
According to Siecap, by 2030 Australia's green hydrogen export market will be worth $2.6 billion, driven by demand from Asia. The continent will account for 70% of global demand.
Siecap also reported the global market for green hydrogen will be worth US$12 trillion by 2050.
Commentary from management
QEM's managing director Gavin Loyden commented on today's news from the company, saying:
The results of the wind farm stage of the study brings QEM another step closer to becoming a pioneering Queensland producer of green hydrogen…
The hydrogen market report independently produced by Siecap further reinforces that our path towards green hydrogen, commencing with investment in on-site renewable energy generation, is the optimal one to deliver long-term value for QEM.
QEM share price snapshot
2021 has been a good year for the QEM share price, which has gained 111% year to date.
It is also 90% higher than it was this time last year.
The company has a market capitalisation of around $15.5 million, with approximately 100 million shares outstanding.
