Lyon Group chair behind huge Desert Bloom renewable hydrogen project that lures Osaka Gas

David Green, the chair of ambitious solar and battery storage developer Lyon Group, has emerged as the main backer of Aqua Aerem, whose $15 billion green hydrogen project in the Northern Territory has gained a new partner in Japan’s Osaka Gas.

Green is managing director of Singapore-based Sanguine Impact Investments, which says it is raising $US250 million and has pledged $1 billion towards the 10GW Desert Bloom renewable hydrogen project that Green now says could be doubled in size to 20GW.

As head of Lyon Group, Green grabbed many headlines over a series of large scale solar and battery storage projects the company announced in 2018 and 2019, although none have yet come to fruition.

Instead, Lyon and its various entities became embroiled in a series of disputes and legal actions with equipment suppliers and investors that led to the winding up of at least one of its entities.

Curiously, Green’s LinkedIn page makes no mention of his involvement in Sanguine or Aqua Aerem, which he chairs and in which Sanguine has a majority stake.

Likewise, Sanguine’s web site makes no mention of Green either. Aqua Aerem’s media representatives were also not aware of the links, but confirmed Green’s identity when pointed to his LinkedIn page: “That’s our David,” one said.

Green himself has been elusive about his role with Desert Bloom in comments made on LinkedIn about other hydrogen projects, including this one made a month ago about a big hydrogen project in Texas and where he promotes Desert Bloom as an “interesting option”.

He also says in the LinkedIn post that he “understands” that Desert Bloom has “committed funding” and attracted “one of the top three Japanese gas buyers” as a partner. He does not disclose his role in those deals.

Aqua Aerem describes Desert Bloom Hydrogen as a “world-first project” that will produce “truly renewable hydrogen for domestic and export markets using only off-grid renewable energy and its own atmospheric water source.”

It is one of a number of highly ambitious renewable energy projects in Australia, including Intercontinental’s 50GW and 26GW wind and solar project proposals in W.A., and Andrew Forrest’s massive plans, on which Green has commented on occasions on LinkedIn, wondering about the water source.

The deal between Aqua Aerem and Osaka Gas aims to produce 410,000 tonnes of green hydrogen per year when at full scale. (Just for comparison, Fortescue’s Andrew Forrest is aiming for 15 million tonnes a year by 2030).

Under the deal signed in Darwin on Tuesday, in the presence of chief minister Michael Gunner, Osaka Gas says it will help with engineering and technical support, identifying customers and dealing with equipment manufacturers.

Aqua Aerem CEO Gerard Reiter says Desert Bloom is the most advanced, shovel-ready green hydrogen project of its scale in Australia, and is helped by its unique technology that captures water from the air.

“This deal is a strong endorsement of the massive value of the project and Aqua Aerem’s innovative air-to-water technology, which is opening the door for green hydrogen projects to be located where the best renewable power sources are available, which is generally in the driest areas of the planet.”

Desert Bloom Hydrogen will comprise a large-scale, off-grid system producing renewable hydrogen that does not require a ground based, riverine, aquafer or a sea water source.

The project consists of a series of modular 2MW Hydrogen Production Units (HPUs) capable of generating water from the atmosphere, as well as producing heat, renewable electricity, and green hydrogen.

The web site says the project to be built on land adjacent to the existing gas-fired Tennant Creek Power Station, and that an agreement has been signed with the NT’s power utility with the intention for it to off-take hydrogen from Desert Bloom’s initial stages.

The company says Desert Bloom Hydrogen will produce revenue from the installation of the first module and does not require large upfront expenditure, including investment in large infrastructure that may become stranded or suffer from technological obsolesence.

“As a result of these substantial savings, Desert Bloom will be on track to produce green hydrogen at an export price international customers want to pay – less than $US2/kg within five years,” it says.

Aqua Aerem says it is also in discussions with other potential partners regarding the purchase of its green hydrogen as well as joint-venture opportunities spanning the energy, chemical, mining, transport, and aviation industries.

RenewEconomy has asked Aqua Aerem’s media team for more details about Green’s role, the financing, and his comments on LinkedIn. We are yet to receive a response.