Shareholders of BPH Energy (ASX: BPH) have approved its investment in Clean Hydrogen Technologies Corporation through investee company Advent Energy.
BPH and Advent have now paid US$1 million for the acquisition of a combined 10% interest in Clean Hydrogen.
BPH has purchased US$800,000 worth of Clean Hydrogen shares to give it an 8% stake, while Advent will own 2% of the company for US$200,000.
The companies have a first right of refusal to invest in Clean Hydrogen to a maximum of a further $1.42 million for an additional 10% equity, before year-end.
BPH first announced plans to acquire a stake in Clean Hydrogen Technologies in May.
Clean Hydrogen will use the investment to design, build, produce and test a reactor which can produce up to 15 kilograms per hour of hydrogen.
It will submit at least two new patents in an agreed location relating to the proprietary hydrogen technology.
BPH holds a 36% interest in Advent, which is an unlisted oil and gas exploration company with a portfolio of assets in onshore and offshore Australia which have been subject to an estimated $81 million in historical exploration.
All permits are located next to a ready market and substantial infrastructure, thereby maximising Advent’s ability to optimise any resources.
Net zero and clean energy
Advent has affirmed its position on net zero and clean energy technology.
“We are a strong supporter of plans for net zero by 2050 and we see [our company] playing a direct role in achieving that target, especially in New South Wales,” it said.
“We aim to do this by finding gas closest to Australia’s biggest energy market which can be used to provide reliable back-up for increased uptake of renewable energy in NSW and through plans to explore offshore NSW for carbon capture and storage opportunities.”
Advent said the investment in Clean Hydrogen complements its strategy.
“Hydrogen technologies can make our economies cleaner, more secure and more resilient [and] providing zero-emission energy will be essential to reaching global climate targets,” it said.
“There is a pending energy crisis in Australia with the need to cleanly transition to renewables [and] there is a huge opportunity for hydrogen energy technology to tap into existing gas infrastructure.”
Hydrogen market growth
According to an International Energy Agency report, the global hydrogen market is projected to grow from less than US$100 billion in 2021 to over US$200 billion by 2030 and over US$500 billion by 2050 in order to meet net zero emissions demands.
The US Government has announced $9.5 billion in funding for the hydrogen industry as part of a $1.2 trillion bipartisan infrastructure bill signed by US President Joe Biden.
BPH said Clean Hydrogen Technologies would make the US market a key focus of its development plans.