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- Sparc Technologies (SPN) and the University of Adelaide (UoA) are set to form a joint venture hydrogen technology company called Sparc Hydrogen
- The companies plan to work together to produce commercially viable ultra-green hydrogen using technology developed by the university
- Upon entering a formal JV, Sparc will issue the UoA 3 million shares, plus expenditure of $4.75 million over 4.5 years towards the JV, after which it will hold a 72 per cent interest
- To fund the cash component, SPN is planning to raise $2.8 million through a share placement
- Shares in Sparc Technologies were up 15.08 per cent at the close of trading on Wednesday to $1.03 each
Sparc Technologies (SPN) and the University of Adelaide (UoA) are set to form a joint venture hydrogen technology company.
The university is SPN’s strategic partner and cornerstone shareholder, and the two will work on the project that aims to use ultra-green hydrogen technology developed by the university to produce commercially viable ultra-green hydrogen.
Specifically, the project will seek to further develop a process known as Thermo-Photocatalysis, which employs the suns radiation and thermal properties to convert water into hydrogen and oxygen.
By using this specific technology, which doesn’t require wind farm or solar farms, the company said capital and operational expenditure costs are expected to be low, which supports production of ultra-green, commercially viable energy that can also be adopted for remote onsite use.
SPN has executed a non-binding term sheet with the university and, should the parties enter a formal joint venture, Sparc will have exclusive licence to UoA’s project IP, including patent application.
The material terms of the agreement will require Sparc to issue the University of Adelaide 3 million shares, plus expenditure of $4.75 million over 4.5 years towards the JV.
The cash contributions comprise an initial commitment over the first 2.5 years of $2 million and $2.5 million over the final two years of the agreement.
A payment of $250,000 is also to be paid to University of Adelaide for operations set-up and a scholarship.
Once the material terms are met, Sparc will hold a 72 per cent interest in the JV, called Sparc Hydrogen.
In the quest to produce the green product, SPN’s Executive Chairman Stephen Hunt said the company is extremely excited to develop it commercially for a “greener world.”
“Green hydrogen energy has often been touted as being able to provide base load electricity, however it has struggled to compete economically against conventional fossil fuel base load electricity,” he said.
“This globally significant project offers a realistic pathway to achieving economically feasible green hydrogen energy and to advancing industry to net-zero.”
To assist with the cash components of the JV, SPN is looking to raise $2.8 million through a share placement.
Following commitments from investors, the company plans to issue four million shares at $0.70 each, representing a 21.8 per cent discount to the last traded price on October 22.
The funds raised will also go towards SPN’s continued development of its graphene-based technology projects.
Shares in Sparc Technologies were up 15.08 per cent at the close of trading on Wednesday to $1.03 each.
