ADX raises $2.85m to progress green hydrogen, geothermal and oil ambitions in Austria
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Investors have backed ADX’s plans to progress its Austrian green hydrogen project, geothermal pilot and conventional oil drilling to the tune of almost $2.85m.
Sophisticated, institutional and professional investors snapped up 284.7 million shares priced at 1c each, a 9% discount from the last closing price of 1.1c.
This included the issue of one placement option at 1.5c by or before 30 June 2022 for every two shares subscribed.
ADX Energy (ASX:ADX) plans to use the proceeds to progress ongoing feasibility work relating to the Vienna Basin green hydrogen production and storage project and the geothermal pilot project in collaboration with Siemens Energy and RED Drilling & Services.
Funds will also be used to complete and tie in the upcoming Anshof-1 oil exploration well in the event of a success as well as licence fees for the extension of the company’s exploration licences in Upper Austria.
“The board of ADX is very pleased to complete this placement at a minimal discount. The additional funding allows the company to pursue its exploration activities as well as the feasibility of its low carbon projects,” executive chairman Ian Tchacos said.
He also expressed his belief that it was in the best interest of shareholders to be able to immediately complete and tie in the Anshof well for production, expand its exploration and geothermal footprint in Upper Austria and maintain its momentum for the commercialisation of the Vienna Basin green hydrogen production and storage project.
The company’s Vienna Basin assets include multiple depleted gas reservoirs that are at the ideal temperature and pressure for hydrogen storage and are conveniently located next to the biggest wind farms in Austria.
With wind and solar energy overloading the grid in summer months, this presents the opportunity to use excess renewable energy to power hydrogen electrolysers.
The resulting hydrogen can then be stored in the reservoirs for sale in winter.
This essentially creates a hydrogen battery where each reservoir can store approximately 500 times more energy than the largest Tesla energy storage Mega Pack (about 200MWh) at a much lower price.
ADX is also looking to tap into geothermal potential of the Mollasse Basin through a pilot project with Siemens Energy, who have a technology that has the potential to produce six times the power per well compared to conventional geothermal power systems.
Separately, the company has started site works for the Anshof-1 oil exploration well that targets up to 6.6 million barrels of oil equivalent.
Drilling is expected to start drilling in mid-December, with work expected to take about 17 days to complete.
Should the well be successful, its location just 50m from an existing oil and gas pipeline bundle will allow rapid commercialisation.
This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.