Key Highlights of the Expansion:
Strategic Location: The newly acquired SPA-AOs are ideally situated within the Ashburton Basin and are contiguous with the company’s existing Edmund-Collier SPA-AO project area. This expansion is further bolstered by the presence of the Goldfields gas transmission pipeline, which crosses the project area and could provide a direct channel to market any potential hydrogen or helium discoveries.
Geological Advantage: The Ashburton and Bresnahan basin areas are rich in critical elements necessary for a successful hydrogen-helium system. This includes a diverse range of potential source-rocks and deep fault-zones essential for the migration of gases into overlying reservoirs of Neoarchean–Proterozoic basins.
Market Potential: The global demand for hydrogen is projected to increase fivefold by 2050, highlighting the growing need for sustainable energy sources. Currently, most hydrogen production is from grey hydrogen derived from natural gas. The expansion into areas with potential for zero-carbon hydrogen production aligns with worldwide efforts to shift towards greener energy solutions.
These newly acquired SPA-AOs complement the company's existing holdings over the Edmund-Collier and Yerrida Basin areas, significantly enhancing Constellation’s position in the competitive natural hydrogen market. This expansion strategically adjoins the company's existing SPA-AOs and intersects with the Goldfields gas transmission pipeline, which could provide a direct route to market for any future hydrogen and helium discoveries.
The Ashburton Basin SPA-AOs are situated north of the Edmund-Collier SPA-AOs and are poised to benefit from the critical geological features of the region. These features include a diversity of potential source-rocks and deep fault-zones crucial for migration into overlying reservoirs, offering optimal conditions for hydrogen and helium generation.
Hydrogen is generated in this region through various processes, including the radiolysis of groundwater as it interacts with the high heat-producing radiometric granites of the Archean Pilbara Craton basement and the Paleoproterozoic Gascoyne Province. These processes may also lead to the generation of secondary gases like helium and methane.
Constellation’s proactive approach in securing these SPA-AOs draws on the global increase in demand for green hydrogen, which is expected to grow fivefold by 2050. The region's geological settings and the company’s advanced exploration capabilities align to capitalize on this rising global market for clean, zero-carbon hydrogen.
The company continues to engage with relevant stakeholders, including native title groups and other tenement holders, to ensure smooth progress in its exploration efforts. Activities are scheduled to commence in the Edmund-Collier SPA-AOs in late March/early April 2025, depending on land access agreements and weather conditions.
