- Australian superannuation fund HESTA agrees to a term sheet with ReNu Energy (RNE) for a $100 million investment to develop green hydrogen projects
- Trustee for HESTA, H.E.S.T Australia, signed off on a non-binding term sheet, under which it will have a first right of refusal to invest in RNE’s existing and new projects
- The initial term sheet provides a strategic framework, which the parties hope to convert into definitive arrangements, subject to HESTA completing due diligence
- With this support, RNE’s CEO Greg Watson says the company will now focus on advancing definitive agreements and commercial offtake discussions
- RNE shares are up 145 per cent and trading at 9.8 cents at 2:38 pm AEDT
ReNu Energy (RNE) shares soared today after Australian superannuation fund HESTA agreed to a term sheet for a $100 million investment in the company’s green hydrogen projects.
HESTA is reportedly the largest superannuation fund in Australia dedicated to the health and community services sector.
Trustee for HESTA, H.E.S.T Australia, signed off on the non-binding term sheet, under which it will have a first right of refusal to invest in existing and new RNE projects, and together, the parties may agree to add additional investors.
RNE will be responsible for securing debt and grant funding for its projects and will be entitled to a fee for originating and progressing its projects.
The initial term sheet provides a strategic framework, which the parties hope to convert into definitive arrangements, subject to HESTA completing due diligence.
Today’s news follows the company’s acquisition of Countrywide Hydrogen in February.
ReNu Chairman Boyd White said with HESTA’s support, the company looked forward to “delivering green hydrogen and contributing to a low carbon future”.
HESTA Chief Investment Officer Sonya Sawtell-Rickson said HESTA was thrilled to be investing in the development of RNU’s green hydrogen projects and looked for further opportunities to support the transition to a low-carbon future.
Moving forward, ReNu’s CEO Greg Watson said the company’s task was to advance to definitive agreements as soon as possible and progress commercial discussions with project partners for green hydrogen offtake.
RNE shares were up 145 per cent to trade at 9.8 cents at 2:38 pm AEDT.