Patriot Hydrogen has identified another significant source of income from its revolutionary, portable “P2H” (Patriot to Hydrogen) units for hydrogen and power production.
Patriot has discovered it can boost its bottom line through the production of something called “biochar” – a stable, carbon-rich form of charcoal used to increase soil fertility.
This is an extremely lucrative market, with demand for biochar use in organic farming rising quickly given its ability to increase crop yields and productivity. Farmers have also discovered the benefits of using biochar in soil for livestock feed, which is another area of demand expected to drive growth in sales.
The global biochar market size is estimated to reach $US3.1bn ($4.1bn) by 2025, according to Grand View Research. It is expected to increase at a CAGR of 13.2% over the forecast period.
New revenue opportunities for biochar also arise from its ability to reduce greenhouse gas emissions in energy production.
Patriot, which is proposed to be 20 per cent owned by ASX-listed Prominence Energy (ASX: PRM) subject to PRM shareholder approval and due diligence by PRM, has the exclusive Australian licence for a scalable containerised hydrogen production system capable of delivering compressed hydrogen and biochar in Australia by late 2021/early 2022.
The company revealed on Tuesday the opportunity had led to “further major accounts in Australia for the production and use of biochar”.
The P2H units produce 1 tonne per day of green hydrogen and up to 4 tonnes per day of biochar per unit.
Biochar can fetch as much as $600 a tonne on market depending on volume.
Patriot says at an average cost of $2.9m each, excluding technology licence fees, the P2H units are economically viable for businesses to enter the hydrogen production and energy revolution.
The P2H units utilise waste and biomass to produce hydrogen and also biochar that can be used as a green energy source to displace the use of fossil fuels.
The new technology uses pyrolysis to convert waste materials into a gas (hydrogen-rich gas or pyrolysis gas) and carbon biochar, which can be sold and used for various industrial or agricultural applications.
Patriot will produce liquid hydrogen for export and domestic markets and to fuel large vehicles, buses, boats, trains and cars, as well as biochar to supply domestic markets.
This article has originally appeared on Stockhead