Elixir Energy Ltd  was as much as 30.44 percent higher on entering a memorandum of understanding (MoU) with Japanese renewable energy company SoftBank Energy Corp to cooperate on research and development for its green hydrogen production project in the Gobi Desert of Mongolia.

The companies intend to proceed with certain pre-feasibility studies in order to first realise the small-scale pilot project with the eventual goal of jointly developing a gigawatt-class green hydrogen production project.

Elixir owns the Nomgon IX Coal-bed Methane project, which is in the South Gobi region of Mongolia and considers that there are potential synergies between its strategy of exploring natural gas and green hydrogen production-related opportunities.

SBE operates Tsetsii Wind Farm, a wind power plant generating 50 megawatts in the Gobi Desert through a joint venture established in Mongolia and wishes to explore the possibility of utilising renewable energy resources in the country to develop green hydrogen energy.

Notably, both parties have been gathering renewable energy data in the Gobi region.

The Watts Business generates power using renewable energy, it operates power plants with a total capacity of 723 megawatts in Japan as well as the 50-megawatt wind farm in Mongolia’s Gobi Desert.