BPH Energy increases stake in Clean Hydrogen Technologies

BPH Energy (ASX: BPH) has increased its interest in Clean Hydrogen Technologies Corporation with a further $1.5 million investment in the turquoise hydrogen producer.

The new shareholder approved uptake of shares in Clean Hydrogen has seen BPH lift its interest in the company to 15.6%, while its 36.1% investee subsidiary Advent Energy now holds a further 3.9% interest.

BPH initially received shareholder approval in mid 2022 to invest in the New York headquartered hydrogen technology company.

BPH and Advent Energy subsequently settled for the acquisition of a 10% interest in Clean Hydrogen for approximately $1,500,000 (8% BPH and 2% Advent) in July 2022.

That initial acquisition also provided them with a first right of refusal to invest further in Clean Hydrogen to a maximum of a further $1,550,000 and the two companies have now executed a loan conversion agreement for $1.5 million which will enable the conversion of the latest loan into the relevant subscription shares, representing BPH’s further 9.5% interest in Clean Hydrogen.

Clean Hydrogen has also issued 760 share options to BPH and 190 share options to Advent, with the option to convert into shares in Clean Hydrogen expiring 10 years from the date of issue.

Recent capital raising supported new share acquisition

BPH recently successfully completed a capital raising to support the acquisition of additional shares in Clean Hydrogen and a number of its other growth projects.

Significant net worth, family office and institutional organisations were amongst the investors that participated in a placement that received binding commitments to raise $1.9 million.

Executive director David Breeze said the proceeds provided the company with a strong cash position to fund its hydrocarbon projects, including the Clean Hydrogen investment.

Clean Hydrogen to support local project development

Earlier this year BPH reached an agreement that would see Clean Hydrogen assist it in the development of a sizeable “stranded” gas field in northern Australia.

Under the agreement, BPH’s investee companies Clean Hydrogen and Onshore Energy, in which BPH also has a 36.1% direct interest, would support Advent’s proposed development of the Weaber gas field located in tje onshore Retention Lease RL1 in the Northern Territory’s Bonaparte Basin.

Onshore Energy is a 100% subsidiary of Advent.

Advent has reported that the 2C contingent resources for Weaber are 11.5 billion cubic feet (Bcf) of natural gas following an independent audit by RISC. Significant upside 3C contingent resources of 45.8 billion cubic feet have also been assessed independently by RISC.

Onshore and Clean Hydrogen have been tasked with developing a strategy under which Clean Hydrogen will process the hydrocarbons from Advent’s gas opportunities to produce high-value hydrogen and carbon black products.

Clean Hydrogen has identified a unique way to process hydrocarbons from natural gas and produce two products, hydrogen (sometimes referred to as turquoise hydrogen) and carbon black.