Israel's Bazan Group (TASE:ORL) (formerly Oil Refineries Ltd.) has received a Ministry of Energy grant for a pilot project to establish infrastructure to market hydrogen for transport. The estimated cost of the project is NIS 12 million, NIS 1.3 million of which will be financed by the Ministry of Energy.
The project was presented as part of proposals for pilot projects of the Ministry of Energy’s Chief Scientist in cooperation with the Alternative Fuels and Smart Transport Administration, under which the Ministry encourages innovation and initiative in the energy economy and works to create a broad forward-looking perspective in the government through programs and projects to form and promote knowledge-based policy.
The objective of Bazan’s project is to develop groundbreaking capability to produce, compress and transport hydrogen in the quality that meets the needs of transportation as a solution to the plan of introducing hydrogen-fueled vehicles into Israel for cleaner transport. The initial target of the project will be to create such capability for the first hydrogen refueling station to be constructed in Israel.
Bazan deputy CEO Shlomi Basson said, "This is real news for the energy economy. Bazan Group’s knowledge and infrastructure are essential to ultimately bringing clean hydrogen from our plants to the future gas station. The steps that Bazan is taking today in the field of hydrogen are a material part of the effort of other leading countries and the subject is also defined as one of the strategic goals of the IEA. I welcome the Ministry of Energy’s support, which is an important stimulating factor at this time."
The measure is part of Bazan’s innovation activities, in which the Group is working to build capabilities based on the organization’s existing infrastructure and knowledge. The success of the project will in fact allow the hydrogen for transport market in Israel to grow and have commercial capability. The main obstacle in the Israeli economy that the project will address is the ability to produce hydrogen in the quantity and quality required, to compress it and thereby to enable it to be transported to gas stations safely.
Bazan Group is the largest hydrogen producer in Israel (with a production capacity of up to 8 tons per hour). As part of the project, Bazan will set up a hydrogen dispensing station from which it will be possible to transport it for refueling and industrial needs. Bazan will also establish the first authorized laboratory in Israel for the required analyses of hydrogen for transport according to the standard that will be adopted.
Published by Globes, Israel business news - en.globes.co.il - on December 30, 2020
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