Global Energy Ventures to raise $12m to fast-track Tiwi green hydrogen project
Russia’s war on the Ukraine has prompted the EU to accelerate its transition to clean energy and Global Energy Venture plans to be at the forefront of the region’s green hydrogen integrated supply chain.
After emerging from a trading halt this morning, Global Energy Ventures (ASX: GEV) revealed it is raising $12 million to fast-track development of its Tiwi green hydrogen project, north of Darwin in the Northern Territory.
The company has received binding commitments from institutional, sophisticated and professional investors which will scoop up 80 million shares at $0.125 each.
An additional $2 million will be raised via a share purchase plan on the same terms as the placement.
The $0.125 issue price was a 10.5% discount to the company’s 15-day volume weighted average price of $0.14.
Global Energy Ventures managing director and chief executive officer Martin Carolan said the placement had attracted a number of new offshore institutional investors to the register, along with the support of existing and new Australian funds.
Advancing Tiwi green hydrogen project
Mr Carolan said the capital raising will assist with accelerating development of the Tiwi project, while also supporting ongoing engineering, approvals and commercialisation of the company’s compressed green hydrogen C-H2 integrated shipping technology.
To underpin the C-H2 shipping technology, Global Energy Ventures announced last month that it was developing a green hydrogen export project on Tiwi Islands.
By combining its shipping technology and Tiwi project, the company aims to develop a fully-integrated green hydrogen production and export supply chain that ships up to 100,000 tonnes per annum of green hydrogen throughout the Asia Pacific.
Mr Carolan said the decision to execute the Tiwi project comes after more than six months of research, analysis and consultation to secure support from key stakeholders including the NT Government, Tiwi Land Council, NT Port and Marine and the Munupi Landowners.
The company has evaluated an 1,800-hectare site for solar generation in a region of high intensity.
Global Energy Ventures noted it would develop the project via a phased approach with the first phase to comprise 0.5GW of installed solar generation. This would then expand to 2.8GW as its regional hydrogen market grows.
C-H2 shipping solution
Shipping will be via the company’s 430t C-H2 vessels.
According to Global Energy Ventures, the Tiwi project will leverage the unique benefits provided from its C-H2 shipping vessels.
Using the C-H2 shipping technology means the project will not require “costly onshore hydrogen storage”.
Additionally, the project will only need minimal battery storage as the production and loading of the green hydrogen will “load follow” the daily and seasonal solar generation profile.