- Metgasco (MEL) is set to purchase waste-to-hydrogen production business Patriot Hydrogen for $5.9 million as part of its diversification strategy
- As part of the deal, Metgasco will first provide Patriot with logistical and financial support before making investments into the company ahead of the all-scrip buyout
- Metgasco Managing Director Ken Aitken says the deal marks an important step for the company as it plans to become a leading low-emissions, multi-fuel producer
- According to Metgasco, Patriot has a framework agreement with a regional technology partner to develop hydrogen production projects in Australia
- Shares in Metgasco are up 8.7 per cent to 2.5 cents at 1:53 pm AEST
Metgasco (MEL) is set to purchase waste-to-hydrogen production business Patriot Hydrogen for $5.9 million as part of its diversification strategy.
As part of the acquisition, Metgasco will first provide Patriot with certain logistical and financial support to provide for plant shipment and delivery.
Metgasco will then make a $750,000 investment into Patriot as part of the first stage of its option to buy the company out, with the final stage to be a full-scrip purchase valuing Patriot at $5.9 million.
Metgasco Managing Director Ken Aitken said the deal marked an important step for the company as it planned to become a leading low-emissions, multi-fuel producer.
“With the completion of the recent Cooper Basin sub-surface program and gas production at Vali due to start in the fourth quarter of this year, the acquisition of Patriot should enable us to offset these emissions while also delivering a compelling standalone commercial opportunity,” Mr Aitken said.
According to Metgasco, Patriot has a framework agreement with a regional technology partner to develop hydrogen production projects in Australia.
The decentralised hydrogen production systems turn waste into five high-value revenue streams — fuel, turbine-generated electricity, biochar, carbon credits and wood vinegar for industrial and agricultural applications.
Patriot has manufactured its first commercial plant unit for Kimberley Clean Energy (KCE) which is due to be commissioned in Q4 2022 as part of a memorandum of understanding signed to deliver up to 75 units to KCE to support remote power needs in Northern Australia.
After the delivery and commissioning of the first unit, Patriot will look to begin the design and manufacturing process for several further identified potential clients who it claims are interested in the company’s technology.
Shares in Metgasco were up 8.7 per cent to 2.5 cents at 1:53 pm AEST.