Gold Hydrogen (ASX:GHY) and Mitsubishi Gas Chemical entered into a memorandum of understanding to explore the potential for the development of a green methanol production facility on the Yorke Peninsula in South Australia, using natural hydrogen produced from Gold Hydrogen's Ramsay project, according to a Monday Australian bourse filing.

Mitsubishi Gas Chemical is the owner of the green methanol production technology, and it plans to collaborate on the studies for the project, subject to its assessment that the supply conditions of the natural hydrogen are suitable for the production of green methanol.

The collaboration is structured as a staged study program, including a prefeasibility study, a definitive feasibility study, and then front-end engineering design.