Strategic Resources Signs Green Hydrogen Collaboration Agreement with Cipher Neutron

17 August 2023

Strategic Resources Inc. (TSXV: SR), a company based in Canada, and Cipher Neutron Inc. (CN) have jointly announced a collaboration agreement to explore the utilization of Anion Exchange Membrane (AEM) Electrolysers from Cipher Neutron for the BlackRock Project's metallurgical facility owned by Strategic in Saguenay, Quebec, Canada. These AEM Electrolysers are intended to produce Green Hydrogen to support the shift towards Green Steel production. Strategic plans to use hydrogen alongside natural gas for its Tenova HYL Energiron direct reduction plant, contributing to near emissions-free iron metallic products used in electric arc furnaces and steel foundries.

The Collaboration Agreement allows Strategic to explore the use of CN's AEM Electrolysers for its BlackRock Project, enhancing iron, titanium, and vanadium production at its metallurgical processing plant in Quebec. Cipher Neutron's AEM Electrolysers offer several advantages over other Green Hydrogen production technologies:

  1. Greater Electrical Efficiency: CN AEM Electrolysers boast superior electrical efficiency, leading to lower hydrogen production costs.
  2. Eco-Friendly Composition: CN AEM Electrolysers do not rely on materials like Platinum, Iridium, PFAS chemicals, or polluting metals, resulting in reduced costs, enhanced availability, and shorter delivery schedules.
  3. Longer Lifespan: CN's AEM membranes exhibit extended lifespans, translating to reduced capital and operating expenses.
  4. Higher Pressure Output: CN's Green Hydrogen is available at pressures of up to 30 bar, minimizing the need for compressors and associated power consumption, further reducing capital and operating costs.

Strategic's leased industrial site at the Port of Saguenay is well-suited for deploying Cipher Neutron's Green Hydrogen AEM Electrolysers. The produced Green Hydrogen can be utilized in Strategic's Hydrogen-ready Tenova HYL Energiron direct reduction plant for the production of high-purity, clean metallic iron products—a significant component of Green Steel.

The collaboration will involve the design of approximately eighty-four (84) 250-Kilowatt AEM Green Hydrogen Electrolysers, producing around ten (10) tonnes of Green Hydrogen gas per day for use in the reduction of iron and potentially other applications for the BlackRock Project. If the initial phase proves successful, the supply of AEM Green Hydrogen Electrolysers could scale up to over two hundred (200) 250-Kilowatt Electrolysers, producing up to thirty (30) tonnes of Green Hydrogen per day for the project.

Both companies expressed enthusiasm for the collaboration, emphasizing its potential to contribute to the global reduction of greenhouse gas emissions and to drive the adoption of greener and more sustainable technologies in the steel industry.