SYDNEY, AUSTRALIA: Sparc Technologies Limited (ASX: SPN) has entered into binding Agreements with global green energy company Fortescue Future Industries (FFI) (100% subsidiary of Fortescue Metals Group, ASX: FMG) and the University of Adelaide, forming the Sparc Hydrogen Joint Venture.
The transaction is the formalisation of the joint venture announced to the ASX on 27 October 2021 as a shareholder of Sparc Hydrogen Pty Ltd (Sparc Hydrogen) via a staged investment.
Sparc Hydrogen is seeking to deliver a unique process with the aim of producing commercially viable green hydrogen via photocatalysis (the Sparc Green Hydrogen Project). The green hydrogen technology has been developed by the University of Adelaide (UoA) and Flinders University.
FFI will now support this important research and development work as emerging world leaders in green hydrogen technology and production. Following FFI’s Stage 1 investment, the initial interest of the parties in respect of Sparc Hydrogen shall be Sparc 52%; UoA 28%; and FFI 20%, with Sparc moving to 36%; UoA 28% and FFI 36% at Stage 2.
Fortescue Future Industries (FFI) CEO, Julie Shuttleworth AM commented: “There is irrefutable scientific evidence that the planet is warming. Green hydrogen is a practical, implementable solution to decarbonise hard to abate sectors, including heavy industry. The research being undertaken by Sparc Hydrogen is important for FFI’s growing technology portfolio as we develop technologies to lower emissions globally. We are excited to enter into this agreement and to support this critical research into green hydrogen.”
Sparc Executive Chairman, Stephen Hunt, commented: “Sparc is extremely excited to be working with a company of the calibre of FFI, which has demonstrated its credentials as being a world leading company in green hydrogen. FFI is very well placed to assist the development and commercialisation of Sparc Hydrogen’s green hydrogen photocatalytic technology.”
University of Adelaide’s Executive Director, Innovation & Commercial, Dr Stephen Rodda commented: “The University of Adelaide is committed to partnering with industry to support the transfer and development of new technologies. Central to this is working with partners that are aligned in the strategic objectives and goals to be achieved.
Bringing FFI into the Sparc Hydrogen joint venture is a tremendous outcome and one that the University of Adelaide is proud to be party to. Not only is FFI’s hydrogen energy strategy strongly aligned to that of Sparc Hydrogen, but FFI will also bring a high level of capability and expertise to support the successful development of this innovative technology”.
Sparc Green Hydrogen 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.
Adopting this process to produce green hydrogen means that renewable energy from wind farms and/or photovoltaic solar panels and expensive electrolysers are not needed. As such, capital and operating expenditure is anticipated to be significantly lower than electrolysis and other forms of hydrogen production currently in use.
Furthermore, this technology can potentially be adopted remotely and for onsite use, thereby reducing the reliance on long distance hydrogen transportation and/or electricity transmission.
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