Agronomics invests AUD 2.5 million in HydGene Renewables to advance green hydrogen production

LONDON, UK: Agronomics (ANIC:LSE), a leading company focused on cellular agriculture, has made a significant investment of AUD 2.5 million in HydGene Renewables Pty Ltd (“HydGene”).

The investment is part of HydGene’s AUD 6 million Seed financing round and aligns with Agronomics’ commitment to investing in environmentally-friendly opportunities.

The funds were drawn from Agronomics’ own resources and will grant the company a 12.50% stake in HydGene on a fully diluted basis, represented by 188,239 Series Seed Preferred Shares. Joining Agronomics in the round are Clean Energy Finance Corporation (CEFC), Understorey Ventures, and NOAB Ventures.

HydGene specializes in engineering microorganisms using synthetic biology to create proprietary biocatalysts for green hydrogen production. The biocatalyst, produced through fermentation, facilitates the conversion of waste biomass into gases like hydrogen and ammonia.

Currently, the global hydrogen market is valued at approximately US$160 billion in 2022, with most hydrogen derived from fossil fuels for chemical production such as ammonia and methanol.

However, the Hydrogen Council anticipates the market to grow into a US$2.5 trillion industry by 2050, accounting for up to 18% of the global energy supply and expanding into transportation, off-grid power generation, and seasonal energy storage.

For hydrogen to become a mainstream energy source, cost-effective green hydrogen solutions are crucial. HydGene’s biocatalyst technology offers a decentralized solution, enabling on-site hydrogen production and bypassing expensive transportation and storage costs.

Jim Mellon, Executive Director of Agronomics, emphasized the importance of efficiently harnessing hydrogen as a renewable energy source to achieve net-zero goals and reduce dependence on fossil fuels. He expressed confidence in HydGene’s technology, which upcycles waste biomass into renewable gases, providing a carbon-negative solution to support the global transition to hydrogen fuel.

HydGene’s Co-founder and CEO, Louise Brown, highlighted the collaborative partnership with Agronomics and their shared vision of offering affordable and sustainable alternatives for producing green molecules, starting with hydrogen derived from waste biomass. The biocatalyst technology lies at the core of their mission to shape a decentralized manufacturing future.

Blair Pritchard, Partner at Virescent Ventures, which manages CEFC’s investment, expressed pride in their AUD 2 million investment in HydGene Renewables.

The technology holds significant potential to expand the global green hydrogen industry, a critical factor in achieving a net-zero emissions economy. Pritchard emphasized the need to produce green hydrogen in various locations with different inputs beyond just solar and wind, and HydGene’s utilization of organic waste streams exemplifies this approach.

Galloway Limited, a company indirectly wholly owned by Jim Mellon, also participated in the funding round with an AUD $200,000 investment on identical terms.

HydGene aims to accelerate the adoption of low-carbon technology by offering an alternative green hydrogen solution. Their process involves using engineered microorganisms as biodegradable biocatalysts to produce hydrogen from biomass waste in a carbon-negative process. By replacing fossil fuel-derived hydrogen, HydGene directly reduces carbon dioxide emissions while diverting biomass waste from combustion or landfill, which would otherwise release methane, a potent greenhouse gas. Additionally, the decentralized approach to hydrogen production aligns with the trend of decentralizing energy production and chemical manufacturing, reducing infrastructure requirements and supporting sustainability efforts.

HydGene focuses on providing an alternative green hydrogen solution through the conversion of biomass waste into hydrogen. By utilizing engineered microorganisms as biocatalysts.