After outlining a broader green H2 strategy in our 2020 Annual Report, Lion refined its strategy in 2021.
Lion aims to be amongst the first movers in green hydrogen production and dispensing in Australia and is mobilising its resources to meet this objective with a focus on the heavy mobility market (trucks, buses) in the eastern states of Australia.
Lion worked with one of Australia’s foremost engineering experts in green hydrogen, GPA Engineering, to develop a technically feasible and economically sound model from real cost inputs including green electricity costs. This work allowed Lion to quickly understand the key cost drivers in delivering green hydrogen at a small to medium scale.
The analysis of various potential markets motivated Lion to focus on the heavy mobility use, where green hydrogen produced at a cost derived from the GPA work is able to compete against current diesel usage.
The techno-economic results of this work were then considered in light of state government’s policy settings where transport ministries are embracing Zero Emission Vehicles from 2025. This allowed Lion to narrow its focus onto the zero-emission public transport in Eastern Australia, which sits at the intersection of favourable technical, economic and regulatory environments.
To enhance Lions ability to market its future hydrogen production, we initiated partnerships with complementary businesses like fuel cell electric bus manufacturers and fleet operators.
Our rationale for venturing into green hydrogen is simple.
Green hydrogen is emission free in production and consumption. We expect global hydrogen consumption to more than double by 2030 with the growing scale in solar and wind energy poised to drive costs lower, accelerating green hydrogen commercialization.