ReNu Energy secures $100m investment from HESTA for green hydrogen projects

Queensland-based ReNu Energy (ASX: RNE) has secured an investment of up to $100 million from Australian superannuation fund HESTA for the development of three green hydrogen projects owned by subsidiary Countrywide Hydrogen.

ReNu acquired Countrywide in February under a share purchase agreement which issued 134 million shares at $0.068 each.

Countrywide owns the Melbourne Hydrogen Hub, Hydrogen Tasmania and Hydrogen Portland projects which are currently under discussion with state governments and large partners, as well as a pipeline of early stage opportunities in Canada and the US.

The projects will initially target the domestic supply of green hydrogen, with longer-term expansions where viable to meet future export demand.

Term sheet conditions

Under the conditions of the new term sheet, ReNu will manage delivery and operation of the green hydrogen projects and will be entitled to a fee which reflects the status and progress of each project at the time of HESTA’s investment.

ReNu will also be responsible for securing debt and grant funding while HESTA will be granted first right of refusal to invest in existing and new projects.

ReNu chief executive officer Greg Watson said HESTA was committed to investing in innovative technologies and businesses which support the transition to a low carbon future.

“We are excited to have HESTA on board as an institutional investor in our green hydrogen projects as is recognised as a leader in responsible investment,” he said.

“Our task now is to advance to definitive agreements as soon as possible and progress commercial discussions with our project partners for green hydrogen offtake.”

Mr Watson said HESTA’s support would enable ReNu to progress its green hydrogen projects from concept to production and become a first-mover in domestic green hydrogen production to markets including road transport, natural gas and industry.

Solar partner

During the September quarter, Countrywide Hydrogen was approached by an international solar consortium to become a hydrogen production partner in a proposed South East Asian project which will provide excess behind-the-meter energy for hydrogen production.

The consortium has developed several solar projects in the region and will introduce Countrywide to potential green hydrogen offtake customers.