Highlights
Green Hydrogen
• Strong progress towards Final Investment Decision for the Group’s flagship Tasmanian
Green Hydrogen projects.
• HESTA signed definitive Platform Agreement for co-investment in ReNu Energy’s Green
Hydrogen Projects.
• Tasmanian Green Hydrogen projects will be the first projects presented to HESTA for
potential co-investment during 2023.
• Project definition, technology selection and basic design completed for the 3 Tasmanian
Green Hydrogen projects.
• Plug Power selected as the preferred contractor to supply 5MW Proton Exchange
Membrane electrolysers at the Brighton (Hobart) and Western Junction (Launceston) sites.
• Fabrum selected as the preferred contractor to provide its H35 Hydrogen Refuelling
Stations at the Brighton, Western Junction and Burnie sites.
• Collaboration progresses with TasGas to tie in project design to enable 100% Green
Hydrogen delivery to industrial customers and blending of Green Hydrogen into the natural
gas distribution network.
• Partnered with 7R Logistics and Walkinshaw Group to decarbonise trucking in Tasmania
through Green Hydrogen offtakes and to provide hydrogen powered trucks.
• Targeting a hydrogen price for road transport operators that competes favourably with
diesel and offers a zero emissions alternative.
• ReNu Energy well positioned to progress Tasmanian Green Hydrogen projects to Final
Investment Decision this year and progress the Group’s other Green Hydrogen projects.
• Investment case for Green Hydrogen is strong.
Investee Companies
• Additional $250,000 investment in Vaulta through the exercise of options for a combined
$750,000 investment and 15% stake. Exercise of remaining options for $250,000 on or
before 13 October 2023 will increase stake to 20%.
• Vaulta expansion and strong progress since ReNu Energy’s initial investment.
• Origin Energy acquires 5% stake in Allegro for $4 million to support the staged
development of a 60MWh pilot Redox Flow Battery.
• Potential for Origin to support Allegro all the way through to funding its first gigafactory.
• Enosi’s Powertracer performs – month on month growth and increased international
interest.
• Enosi’s selection as a winner of Plenitude's “One to Zero Challenge” and acceptance
into the Global Free Electrons program provides firm pathways for Powertracer
international deployment.
Corporate
• Chairman appointed to interim executive role to apply project delivery expertise and
work with CEO and Executive Director to take Tasmanian Green Hydrogen projects to Final
Investment Decision.
ReNu Energy Limited is pleased to provide the
following update on its recent activities for the three-month period ended 30 June 2023 (the
quarter).
Green Hydrogen
ReNu Energy, together with its wholly owned subsidiary Countrywide Hydrogen Pty Ltd
(Countrywide), (ReNu Energy and Countrywide together the Group) made strong progress
during the quarter towards a Final Investment Decision (FID) for the Group’s flagship Tasmanian
Green Hydrogen projects. The Group’s progress and milestones achieved for the quarter are
summarised below.
HESTA Platform Agreement for co-investment in the Group’s Green Hydrogen Projects
During the quarter ReNu Energy and Australian superannuation fund H.E.S.T. Australia Ltd as
trustee for HESTA (HESTA) signed a Platform Agreement for HESTA’s potential investment in
the Green Hydrogen projects being developed by the Group. The Platform Agreement converts
the previously announced Term Sheet with HESTA into a definitive agreement setting out the
framework for future co-investment with no cap on the potential investment amount. The
framework provides for HESTA’s evaluation in Green Hydrogen projects developed by the Group
and co-investment principles where HESTA decides to co-invest.
Where HESTA and ReNu Energy agree to progress a Green Hydrogen Project, and jointly invest
in a project specific vehicle, the co-investment principles are that the parties will jointly own the
selected hydrogen project with the Group responsible for the development and operation of the
projects and entitled to a development fee for development activities prior to the co-investment.
The Group’s Tasmanian Green Hydrogen Projects will be the first projects presented to HESTA
for co-investment during 2023.
HESTA has a long-term focus on investing in opportunities arising from the transition to a lower
carbon future. HESTA is looking for opportunities to invest in the development of innovative
technologies and businesses at the forefront of decarbonisation. The Platform Agreement is a
robust agreement that provides ReNu Energy shareholders with a potential co-investment partner
highly respected for its commitment to sustainability and responsible investments.
Equipment, design and preferred suppliers selected for the Group’s Tasmanian Projects
During the quarter, a significant amount of work was undertaken to progress the technical side of
Countrywide’s Tasmania Green Hydrogen projects. The culmination of that work saw the Group
complete the design, technology and supplier selection for the projects. The project partners for
design, supplier of electrolysers and Hydrogen Refuelling Stations (HRS) and construction
contractor are:
• Wood (https://www.woodplc.com/) as the Group’s engineer who advised on selection of the
technology, preferred suppliers, basic design and capital cost estimates. Wood has
commenced final design to deliver the projects.
• Plug Power Inc (Plug Power) as the supplier of two 5-megawatt (MW) Proton Exchange
Membrane (PEM) electrolysers, each designed for up to 2,100kg/day of hydrogen production
at the Brighton (Hobart) and Western Junction (Launceston) sites. Plug Power
(www.plugpower.com/) is a leader in comprehensive hydrogen solutions for the Green
Hydrogen economy.
• Fabrum Solutions Limited (Fabrum) as the supplier of the HRS (comprising a refueller hub
and hydrogen tube trailer storage system). Fabrum (https://fabrum.nz/) is a New Zealand
based company with several Green Hydrogen projects under construction in Australia and
internationally.
• Wasco (Australia) Pty Ltd (Wasco) as the construction contractor to work with Fabrum on
the construction and balance of works for the projects. Wasco (https://wascoenergy.com.au/)
is an Australian-based construction, operations and maintenance services contractor.
The parties are progressing the contractual documentation for the supply and installation of the
PEM electrolysers and HRS, the construction contract and an interface agreement setting out the
support, cooperation and coordination each contractor will provide to other contractors.
Focus on offtakes
The potential domestic market for Green Hydrogen is growing due to the appetite for
decarbonising industry, road transport and natural gas networks with many Australian companies
having set emissions reductions targets they are seeking to meet. The Group sees the potential
for first mover and cost advantage by initially targeting domestic supply, with longer-term
capability to expand selected projects to meet future export demand when that market matures.
Decarbonising natural gas networks and directly supplying Green Hydrogen
During 2022, ReNu Energy announced the signing of a Term Sheet Agreement with Tas Gas
Networks Pty Ltd (Tas Gas Networks) and Tas Gas Retail Pty Ltd (Tas Gas Retail) to work
collaboratively to achieve 100% Green Hydrogen delivery to industrial customers and the blending
of Green Hydrogen into the existing natural gas distribution network.
The parties have made strong progress since then, working together on the technical and
commercial requirements for supplying customers with both 100% Green Hydrogen and blending
the Green Hydrogen with natural gas. During the quarter Tas Gas commenced pipe-laying works
to enable the first customer to operate its boiler on 100% Green Hydrogen.
Decarbonising road transport
While road transport plays a critical role throughout the Australian economy, it also contributes to
around 20 percent of the nation’s emissions. With major companies and sectors targeting the
delivery of their stated emissions reductions targets, the Group is observing corporates identifying
road transport as a focus for decarbonising operations.
During the quarter, Countrywide signed a Joint Co-operation Agreement (JCA) with road transport
operator Smartavait Technologies Pty Ltd trading as 7R Logistics (7R Logistics) to enable and
promote the use of Green Hydrogen by heavy transport vehicles, initially in Tasmania, with other
states planned to then follow. 7R Logistics is a major haulage provider to the dairy industry in
Tasmania. Under the JCA, Countrywide will progress its Tasmanian Green Hydrogen projects
with a view to supplying certified Green Hydrogen to 7R Logistics. 7R Logistics will also support
Countrywide in its efforts by working to offer a zero emissions heavy vehicle transport alternative
to new customers, using fuel cell electric vehicles and purchasing Green Hydrogen exclusively
from Countywide.
During the quarter, Countrywide signed a Letter Agreement (Agreement) with Walkinshaw
Automotive Group Pty Ltd (Walkinshaw) to investigate the development of hydrogen powered
trucks and prime movers for the Australian market. Walkinshaw is a global leader in the design,
engineering, development, and marketing of performance vehicles. The partnership with
Walkinshaw is aimed at fast tracking the introduction of hydrogen fuel cell trucks across Australia
and follows the JCA with 7R Logistics on the potential transition of 7R’s Tasmanian fleet from
diesel to zero-emission fuel cell trucks.
Under the terms of the Agreement, Countrywide and Walkinshaw will work together to assess the
feasibility of delivering Right-Hand-Drive (RHD) fuel cell trucks throughout Australia with
Countrywide building the market and Walkinshaw supplying it with trucks. The parties will explore
the importation of Left-Hand-Drive fuel cell trucks to then convert them to RHD. Walkinshaw is
currently delivering 70 such conversions a day with RAM and Silverado in the 4WD ute category,
working directly with multiple OEMs (original equipment manufacturers). Another option the
parties will explore is securing truck bodies without an engine or drive train (gliders) to be fitted
out with the commercially available Toyota fuel cell and electric drive train.
The Group is targeting a hydrogen price for road transport that competes favourably with diesel.
This comes with zero emissions and an offtake profile that has less price variability and potential
for improved security of supply compared to diesel.
The Group’s international Green Hydrogen opportunities
Discussions continued during the quarter on the Group’s offshore opportunities in North America,
Indonesia and India. Following an introduction by the Canadian High Commission, interest has
been expressed in rolling out the Group’s Australian model in Canada in collaboration with a fund
that has global renewable investments. Canada has a similar funding regime to the USA’s Inflation
Reduction Act. The tender by the Group’s Riau Archipelago project partner, Anantara Energy, to
build a 3.5GW solar farm remains under evaluation. Research continued on whether the Group’s
Australian model can be replicated in India where the Indian Federal Government is supporting
the decarbonisation of the economy.
Renewable and Clean Energy Investments
A distinctive feature of ReNu Energy’s business model is to incubate and accelerate a portfolio of
investments in renewable and clean energy technologies with the potential to leverage synergies
and trigger investment revaluations as the companies advance.
Dealing with battery waste – investment in Vaulta1
Vaulta is a battery casing tech company that has developed and patented technology for battery
disassembly, enabling replacement or re-purposing of individual cells leading to less battery
waste and reduced landfill.
During the quarter, ReNu Energy completed a third tranche investment of $250,000 in Vaulta
Holdings Pty Ltd (Vaulta). The $250,000 investment was in addition to the $500,000 equity
investment that occurred in two equal tranches of $250,000 on 13 January 2023 and 13 April
2023. The additional investment resulted from the exercise of 50% of the 1:1 free attaching Vaulta
options that ReNu Energy holds with a total exercise price of $500,000. The remaining balance
of options expire on 13 October 2023.
Following completion of the third tranche investment, ReNu Energy holds approximately 15% of
Vaulta's issued share capital. The exercise of the remaining options on or before 13 October
2023 for $250,000 will increase ReNu Energy’s interest in Vaulta to approximately 20%.
The funds invested by ReNu Energy will provide Vaulta the capital required to scale its
manufacturing capability and target further sales domestically and into the Asia Pacific and North
American markets.
Since ReNu Energy’s initial investment Vaulta has more than doubled its workforce, acquired new
customers, enhanced quality through progressing ISO9001 certification (quality management
system) and commenced product certifications for battery standards IEC62619 and UN38.3.
During July 2023 Vaulta’s operations will expand to a dedicated manufacturing facility in
Northgate Brisbane at the ARM (Advanced Robotics for Manufacturing) Hub.
Vaulta has also received a strong response to its residential expression of interest campaign with
battery installations expected to commence from August 2023. Vaulta continues to develop its
thermally conductive and electrically insular polymer and garner international interest. As well as
expanding domestic and international sales in stationary battery storage, Vaulta’s plans for
2023/24 include evaluating development opportunities in aerospace, road mobility, defence and
consumer products.
Powering a greener energy storage future – investment in Allegro Energy2
Allegro Energy has developed water based Redox Flow Batteries (RFBs) and supercapacitors
that are clean, non-flammable, non-corrosive, recyclable with no reliance on scarce materials. At
the core of both products is Allegro’s unique water-based electrolyte which enables energy
storage that is potentially less expensive and safer than competing technology.
During the quarter, Origin Energy Power Limited (Origin) acquired a 5% equity stake in Allegro
Energy Pty Ltd (Allegro) for $4 million. Origin's investment will be used by Allegro to develop an
800kWh pilot RFB at Origin's Eraring Power Station. The agreement between Origin and Allegro
provides Origin the option to make further investments in Allegro, including to fund the deployment
of a 60MWh RFB to be installed at one of Origin’s facilities. The agreement also gives Origin the
opportunity to support Allegro all the way through to funding its first gigafactory.
Origin’s investment is a powerful endorsement of Allegro’s proprietary battery technology. Origin’s
support will help Allegro develop large-scale manufacturing of its RFBs which have the potential
to deliver a cleaner, cheaper and safer global storage solution to the worldwide energy market.
Origin’s stake in Allegro also provides strong evidence of the need by energy retailers and others
in the sector to answer the long duration energy storage challenge, which will ultimately play an
important role in the energy mix.
Following completion of the initial investment by Origin, ReNu Energy now holds 4.86% of
Allegro's issued share capital achieved at a cost of investment of $545,000.
24/7 clean energy: traceability is here – investment in Enosi3
Enosi’s Powertracer product is a clean energy solution that enables complete traceability of
renewable energy, from production to consumption. Hourly time stamps will be critical pieces of
data for electricity retailers and large corporates aiming to use 24/7 carbon free energy, which
means matching the clean energy they buy to the energy they consume every hour of every day.
Off the back of ReNu Energy completing a further $1 million investment in the previous quarter,
Enosi Australia Pty Ltd (Enosi) experienced positive month-on-month growth for its Powertracer
product in the Australian market with retail partner pilot projects growing into the mainstream.
With increased macro awareness of greenwashing, Enosi is also witnessing an increased number
of corporates seeking electricity contracts for time-matched renewable energy supply with
Powertracer providing the technology to certify clean energy to the markets.
During April Enosi was selected as a winner of a cleantech startup competition in
Italy, Plenitude's “One to Zero Challenge”, from a field of 129 global startups
(https://www.eni.com/en-IT/media/press-release/2023/04/plenitude-one-to-zero-challengewinners-revealed.html). The win provides Enosi with a pathway to secure a contract with
Plenitude to deploy Powertracer for its Italian customers in the coming months.
During May Enosi was accepted into the global Free Electrons program, which is a leading
cleantech accelerator run by a league of 7 global energy utility companies
(https://freeelectrons.org/). Enosi was one of just 29 companies selected from 750 applications
from around the world for the bootcamp program in Dublin. The program provides a pathway to
progress pilot programs with leading utility companies.
Enosi continued to work with Singapore’s Senoko Energy during the quarter to release a full-scale
traceability enabled product called SolarShare with a target of at least 5,000 customers in the first
12 months. Enosi is also negotiating an agreement with UK energy retailer BPG Energy for a
large-scale pilot program.
Enosi is working on expanding its UK pipeline where regulatory changes provide the opportunity
for energy matched supply (on Powertracer) to classify renewable energy supply in a manner that
allows customers to access lower charges. Enosi’s UK and European expansion programs are
being aided by the $1.0 million Cleantech Acceleration Grant awarded by the NSW Government
during the previous quarter.
Enosi believes there has been a recent fundamental shift in the market for traceability software
and services. Its interactions with the industry have shifted from the question “Is traceability really
going to be a thing?” to “How can we best make use of traceability?”. Enosi is now finding itself
no longer just of interest to ‘innovation teams’ but rather working directly with retail energy
suppliers’ core business teams. Enosi believes it is entering into a new high-growth phase and is
focused on progressing deployments from pilot stage to mainstream retail energy products in
multiple markets.
Micro renewable energy generator – investment in Uniflow Power4
Uniflow is commercialising a unique, micro renewable energy generator – The Cobber – that uses
solid biomass (such as agricultural waste) to create energy, delivering approximately 4.5kW of
electrical power and 20kW thermal energy.
During the quarter Uniflow management continued demonstrations of the Cobber’s potential
application in micro economic development at its facility at Mugga Mugga, Canberra. The
demonstrations show the Cobber producing power (both directly and into battery storage) and the
integrated hydronic heating system. Uniflow continues to assess options to secure additional
funding to progress its business plan and fund the pathway to commercialisation. Once funding
is secured, Uniflow will focus on the strategy to commercialise the Cobber, including through an
MVP (minimum viable product) analysis for the Cobber and assessment of manufacturing options
and licensing opportunities.
Uniflow believes the Cobber is the only biomass fuelled, residential scale, CHP generator
operating for demonstration anywhere in the world. Small scale biomass fuelled CHP systems
have an important role to play in displacing fossil fuel generators in off grid applications, and
firming supply in micro-grids during hours of peak demand, including when solar supply is
unavailable.
Corporate
Chairman appointed to interim executive role
During the quarter the Board of ReNu Energy was pleased to appoint its Chairman, Boyd White,
to an interim executive role to work with the executive team (CEO Greg Watson and Executive
Director Geoffrey Drucker) to help drive strategy and take the Group’s Green Hydrogen projects
in Tasmania to FID. With over 30 years business experience, Boyd has an accomplished record
in the energy, infrastructure and mining sectors and has managed, developed and financed
several major projects. The Board welcomes the additional strategic, development and financing
skills that Boyd brings to the executive team.
Cash balance
ReNu Energy retained $1.3 million in cash and cash equivalents at 30 June 2023 ($2.8 million at
31 March 2023). Administration and corporate costs were higher than the previous quarter due to
the prepayment of 2023-24 insurance premiums. Cash outflows from these activities are expected
to reduce in the September quarter.
Outlook
The Board and management believe there is a strong investment case now for Green Hydrogen:
• Green Hydrogen is currently enjoying unprecedented political, investment and business
momentum globally.
• Green Hydrogen offers ways to decarbonise a range of sectors (including long-haul transport
and natural gas networks) where it is proving difficult to meaningfully reduce emissions.
• Technologies are available today that enable Green Hydrogen to be transformed into
electricity, to reduce natural gas emissions and fuel trucks, buses and cars.
• Green Hydrogen is one of the leading options for storing energy from renewables.
• The recent investment in Green Hydrogen by major global corporates evidence Green
Hydrogen is recognised as a fuel of the future.
Likewise, the Board and management believe the investment case for ReNu Energy is strong:
• First mover access to a Green Hydrogen ecosystem with the three Tasmanian locations
providing statewide coverage and targeting first production mid-2025.
• The Tasmanian model provides a showcase for national rollout.
• The domestic supply focus and ability to scale size provides a strong economic model with a
target hydrogen price for road transport that competes favourably with diesel (and with zero
emissions).
• Strong partners and Government support – HESTA, Societe Generale, Deloitte, Wood, Plug
Power, Fabrum, TasGas, 7R Logistics, Walkinshaw and more. ARENA grant application in
progress.
• Investment returns on incubator and accelerator portfolio (e.g. Allegro raising $4m through
issuing 5% of issued capital with ReNu Energy’s cost of investment for 4.86% at $545,000).
• Revaluation events are on the horizon, including but not limited to targeted FID for Tasmanian
Green Hydrogen projects during 2023, positive earnings from Green Hydrogen production
targeted from mid-2025, investee company revaluations and merger & acquisition activity.
The Board and management believe that the Group is well positioned to:
• Advance the Tasmanian Green Hydrogen projects to an FID decision this year and progress
Countrywide’s other Green Hydrogen projects.
• Support and progress the Company’s other renewable and clean energy investments during
2023, and to assess opportunities for additional renewable & clean energy investment
opportunities where the Company’s investment criteria is met.
This market announcement has been authorised for release to the ASX by the Board of Directors.
