Province Resources (ASX: PRL) has announced plans to acquire Exploration License Applications for a new green energy project located in Western Australia.

Formally Scandivanadium (ASX: SVD), PRL has entered into a conditional agreement to acquire a company which holds seven license applications in the Gascoyne region of WA, which are suitable for developing a renewable green hydrogen project.

PRL is aiming to develop Australia's first truly Zero Carbon Hydrogen^TM project.

World on cusp of a hydrogen revolution - PRL is Australia's first

There is a global push away from using fossil-fuel based hydrogen as an ingredient for industrial process to green hydrogen.

Green hydrogen, generated from wind and solar, could fast track the fight against climate change.

According to Bank of America, the hydrogen marketplace could reach $11 trillion by 2050, possessing the ability to supply our vast energy needs, fuel our cars, heat our homes, and also help to fight climate change.

On the back of climate commitments in Europe and Asia, nearly half of the globe has already embraced net zero policies; further, early statements from the new US Administration appear encouraging.

For climate experts, green hydrogen is indispensable to climate neutrality; featuring in all eight of the European Commission's net zero scenarios for 2050.

PRL's Hydrogen will be Green AND Zero Carbon

Australia's potential zero carbon hydrogen exports could reach $2.2 billion by 2030 and $5.7 billion by 2040.

Really, it should go without saying then that companies targeting this trend early in its gestation, should be the ones to benefit long term.

PRL's HyEnergy Renewable Hydrogen Project is proposed to generate 1GW (1,000MW) of renewable energy in Western Australia, using wind and solar and to produce approximately 60,000t of green hydrogen or up to approximately 300,000t of green ammonia.

The result would create a clean zero carbon Gas or Liquid Hydrogen Fuel that according to Andrew Twiggy Forrest "could power the world for all of mankind's existence".

According to Forrest, by 2050 green (renewable) hydrogen could be the most important green energy source in the world.

"The green hydrogen market could generate revenues, at the very least, of $US12 trillion by 2050 — bigger than any industry we have now," Forrest says.

Province is at the very beginning of its journey. Just like any resources project, it is all about scale, and a large project could generate extremely high economic returns on the back of minimal operating costs.

Province shows all the early signs to be the next company that can emulate another emerging Zero Carbon commodity developer, Vulcan Resources (ASX: VUL). Vulcan is a company that delivered one of the best share price performances on the ASX in decades as its shares increased by more than 5000% in the 12 months to 19 January, 2021.

PRL's fundamentals

Province Resources sums up the imminent opportunities in the below infographic.

Along with this, PRLs fundamentals are:

• Chairman David Francis has a history of bringing companies into their next phase of life and turning them into highly sought-after acquisition targets. Winward Resources was acquired by the $4.6BN capped Independence Group Ltd (ASX: IGO) in 2016.
• The same people behind Vulcan Resources are invested in PRL, including VUL MD Francis Wedin.
• The rise of green hydrogen. According to Andrew Twiggy Forrest, "Green hydrogen (is) the purest source of energy in the world — and one that could replace up to three quarters of our emissions, if we improve the technology and had the scale.
• PRL's project. The company aims to be the first significant West Australian producer and exporter of 100% renewable hydrogen and ammonia, making Western Australia's market share in global hydrogen exports comparable to its share in LNG today.
• WA's solar is amongst the highest irradiance in the world and, due to being on the western edge of the continent, it has excellent wind resources, which makes this project an excellent proposition moving forward.
• Adoption of ‘green economy' strategies is accelerating rapidly with Australia pouring $300M into the Australian Government Advancing Hydrogen Fund. This is on top of UK PM Boris Johnson investing 12 billion pounds in green energy, and banning the sale of all fossil fuel engines by 2030. Europe allocating a trillion Euros to reach zero emissions by 2050. The US pledging $US2 trillion and China, Japan and South Korea combining to pledge to put almost 8 million hydrogen fuel cell cars on the road.
• Further to that, investment in ESG focused companies continues to rise.

Renewable hydrogen in WA is a big ticket item

As mentioned, PRL is setting up in the perfect location.

The Gascoyne region in Western Australia has world class solar and wind resources and significantly, those resources are perfectly complementary, with high incidence of sun during the daytime and high wind speeds in the morning, evening and night. This enables competitively priced predictable and firm renewable electricity output, 365 days a year.

PRL is looking to become an Australian leader in green hydrogen production, through its Zero Carbon Hydrogen Project^TM. It would be the only ASX listed junior to do this, giving investors an excellent early entry point into this growing market.

Project plans

In the next 12-18 months, the company will:

• Execute a heritage agreement with the Yinggarda Aboriginal Corporation (YAC) to govern the conduct of site resource monitoring investigations
• Undertake numerous key stakeholder discussions, including, Carnarvon Shire and Community, WA government, Federal government and Indigenous representatives (YAC)
• Assemble a highly capable project team including local & international experts
• Commence feasibility studies for both renewable power generation and green hydrogen production
• Execute a binding MoU with an IPP (Independent Power Provider) to develop the renewable power required for the H2 plant
• Initiate discussions with potential offtakers and AGAIG - Australian Gas and Infrastructure Group (owners of the DBNGP).

PRL is an early stage play, however there is a real opportunity for it to take the reins in providing an all Australian green hydrogen solution that could have worldwide impact.