ADX has signed a memorandum of agreement (MOA) with Windkraft Simonsfeld (WKS) for the supply of green electricity and the joint development of a green hydrogen production and underground storage project in the Vienna Basin (H2 Project).
WKS is a major Austria-based European wind power producer that will be operating 91 wind power plants by end of this year, generating approximately 640m kWh kilowatt hours per year.
WKS operates and builds wind power plants near the ADX fields where green electricity generation capacity will be curtailed from time to time.
Under the agreement ADX will manage and coordinate development planning and execution as well as operations supply the necessary reservoirs, wells, surface facilities and infrastructure.
It will also manage the marketing and sale of green hydrogen; and provide project management and operations services to execute and operate hydrogen generation (electrolyser), storage and transportation facilities.
WKS will supply electricity generated from renewable sources (wind and solar) to the H2 Project.
The power grid infrastructure in the northern Vienna basin is now reaching its limits.
Due to the lack of power distribution capacity, clean wind power from WKS nearby existing and new wind farms in Prinzendorf and Poysdorf-Wilfersdorf (localities close to the ADX Vienna Basin fields) cannot always gain 100% access into the grid.
This is especially the case during periods of strong winds.
At these times WKS power production has to be partially curtailed resulting in the loss of clean electricity.
The H2 Project will allow curtailed wind power to be sensibly used for green hydrogen production.
With an electrolyser, wind power is converted into green hydrogen and can be temporarily stored in existing underground storage facilities.
ADX has such underground storage in the immediate vicinity of the WKS wind farm in Prinzendorf.
ADX executive chairman Ian Tchacos said: “The Board of ADX is very encouraged by the progress being made by our Austrian management team on the H2 Project.
“They have delivered an important strategic relationship with Windkraft Simonsfeld AG (“WKS”) which is a leading green energy producer and operator.
“WKS has an exceptional environmental and community engagement track record in the Vienna basin where ADX also produces safe, long life, low emissions oil and gas.
“The supply of currently curtailed green electricity to the H2 Project by WKS and their potential involvement in the project provides strong alignment between the parties and significantly enhances the certainty of H2 Project formation at a rapid pace.
“We look forward to working with WKS to capture existing and emerging hydrogen market opportunities by repurposing our assets for a long green energy production future.”