Lion Energy Limited (ASX: LIO) has announced the execution of a definitive joint development agreement with DGA Energy Solutions Australia Pty Ltd, a wholly owned subsidiary of Mitsubishi Corporation, and Samsung C&T Corporation to co-develop its green hydrogen hub at the Port of Brisbane, Australia.

Under this agreement, DGA and Samsung C&T will initially contribute A$3.7 million to Lion Energy, covering both historical and ongoing pre-construction costs. In exchange, each party will secure a 25% stake in the Project. Following this initial phase, and upon mutual agreement to proceed with construction, DGA and Samsung C&T will arrange debt financing totaling A$6.3 million. This financing is expected to fully cover the capital requirements needed to complete the Project.

As a result of the joint development agreement, and contingent upon the parties' decision to proceed with construction, the ownership structure of the Project company, Lion H2 Energy Pty Ltd, will be established as follows: Lion Energy will hold a 50% stake, reflecting its lead role in the project, while DGA Energy Solutions Australia Pty Ltd and Samsung C&T Corporation will each acquire a 25% interest, signifying their strategic investment and collaboration in the development of the green hydrogen hub.

Tom Soulsby, Lion’s Executive Chairman, expressed enthusiasm about partnering with DGA and Samsung, highlighting their expertise and the confidence they bring to the project. He emphasized that their involvement underscores the promising future of green hydrogen in Australia and Lion’s strong capabilities. Soulsby noted that this partnership secures funding for the project, enabling Lion to direct its current and future resources toward new ventures.

DGA Energy Solutions Australia Pty Ltd is a wholly owned subsidiary of Mitsubishi Corporation, established in 2023 to spearhead the company's renewable energy and green hydrogen/ammonia production projects in the Oceania region. As part of the MC Power Solution Group, DGA plays a pivotal role in identifying, investing in, and developing sustainable energy solutions within the region.

Samsung C&T, a global powerhouse with four business divisions, stands as a leader in the Engineering & Construction sector worldwide. The company's Engineering & Construction group delivers comprehensive business solutions across the globe, focusing on energy solutions (plants), commercial and residential buildings, and civil infrastructure projects.

The current project involves developing a green hydrogen production and distribution facility at the Port of Brisbane, with a planned production capacity exceeding 300 tonnes annually.  Lion has also entered into procurement agreements with key equipment suppliers, ensuring the acquisition of two electrolysers and a refueling package. Additionally, the company has secured two hydrogen tube trailers, which are currently leased to third parties at commercial rates until they are needed for the project.

The Port of Brisbane project is poised to serve as a model for future green hydrogen hub-and-spoke supply facilities throughout eastern Australia. Lion's long-term vision is to establish itself as a key player in driving the heavy transportation industry's transition toward zero emissions.