- Environmental Clean Technologies (ECT) partners with GrapheneX to develop its demonstration project at Bacchus Marsh in Victoria
- The joint venture agreement (JVA) facilitates the phase two roll out of the project which was put on hold in October as ECT completed a strategic review
- Now, the parties will work together to build a low emission electricity production demonstration which is set to be the largest of its kind in Australia
- To fund its obligations under the JVA, ECT has tapped investors for $5 million via a share placement of 166.6 million shares to be issued at three cents each
- Company shares resumed trade today and dropped 3.03 per cent to trade at 3.2 cents
Environmental Clean Technologies (ECT) has partnered with GrapheneX to develop its demonstration project at Bacchus Marsh in Victoria.
The joint venture agreement (JVA) facilitates the phase two roll out of the project which was put on hold in October as ECT completed a strategic review.
Now, the parties will work together to achieve a first-of-a-kind demonstration of low emission electricity production from syngas and the generation of hydrogen derivative products from lignite and waste biomass blends.
It will be the largest demonstration of its kind in Australia, according to ECT.
GrapheneX’s business is focused on developing “technically feasible” and “commercially viable” manufacturing processes for smart materials and digital platforms.
It is also a founding industry partner of the Clayton Hydrogen cluster and is involved in testing, trialing and demonstrating new and emerging hydrogen technologies.
Under the partnership with ECT, GrapheneX will be responsible for supplying a multi-feedstock 39 megawatt turbine to be installed at the Bacchus Marsh site.
GrapheneX will also supply funding of $3.5 million for installation of a turbine and the formic acid process equipment.
As ECT’s part of the deal, it will commit $3.5 million to the JVA to fund the installation of the pyrolysis kiln and ancillary plant to produce char and syngas from COLDry pellets made from a blend of biomass and lignite.
“Once installed, the process will be the largest hydrogen production capability from lignite,” Managing Director Glenn Fozard said.
“Add to that the largest demonstration of low emission electricity from lignite syngas, and we have a site of national significance.”
The company also said moving forward with phase two of this project paves the way for deployment of its previously announced NZEH2 Refinery Hub project located adjacent to the Yallourn mine and power station complex in Victoria’s Latrobe Valley.
The JVA does not have a set expiry date and the works are set to commence as soon as the partners complete the project execution plan over the coming weeks.
Any net revenue will be shared between the partners 50:50 and ECT said it will provide regular updates to the market regarding any off-take agreements.
To fund its obligations under the JVA, ECT has tapped investors for $5 million via a share placement.
The company said it received firm commitments from institutional and sophisticated investors for the placement which comprises 166.6 million shares to be issued at three cents each.
The issue price represents a nine per cent discount to the company’s last traded share price and a nine per cent discount to the five-day volume-weighted average share price.
For every three shares issued under the placement, the company will issue two free attaching listed options exercisable at three cents and expiring on February 23, 2023.
While the first attaching placement option will be issued under the company’s 15 per cent capacity, the second is subject to shareholder approval.
Completion of the placement is expected to occur on or around May 3.
Company shares resumed trade today and dropped 3.03 per cent to trade at 3.2 cents at 3:43 pm AEST.