Sparc raises $3.5m to accelerate hydrogen pilot, graphene research
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Sparc’s plan to accelerate its hydrogen pilot plant and graphene R&D programs has received strong support from sophisticated and other professional investors.
This support has translated into firm commitments from existing and new institutional and high net worth investors for a $3.5m placement of shares priced at 65c each, which represents a 17.4% discount to the 10-day volume weighted average price.
The placement includes the issue of one free attaching unlisted option excisable at $1 and expiring on or before 30 November 2024 for every two shares subscribed.
Proceeds from the placement will be used by Sparc Technologies (ASX:SPN) to meet costs associated with scoping the acceleration of the pilot plant which will validate the commercial potential of its green hydrogen technology and production process.
It will also be used for R&D programs to support development of graphene products.
“Sparc is very pleased to have received strong support from investors which we see as a vote of confidence for the green hydrogen technology and graphene products Sparc is advancing,” executive chairman Stephen Hunt said.
“In particular, the capital raise puts Sparc in a solid financial position to pursue the fast tracking of the photocatalytic hydrogen pilot plant together with the Sparc Hydrogen JV partners, Fortescue Future Industries and The University of Adelaide.”
The company and its partners – Fortescue Future Industries (FFI) and the University of Adelaide – had moved to accelerate plans to build the pilot plant after the Preliminary Techno-Economic Analysis found that the patent pending photocatalytic water splitting technology could produce green hydrogen at low cost.
This is due to the relatively low electricity input, water and land use compared to standard electrolysis as well as the potential to be more scalable than other forms of hydrogen production due to its lower utility and infrastructure requirements.
Sparc’s tech uses a catalyst exposed to direct sunlight to convert water into hydrogen and oxygen, significantly reducing the need for wind farms or massive arrays of solar panels that are required for traditional electrolysis.
The planned pilot plant will seek to validate the potential of the technology to yield material reductions with respect to electricity, water and land use against existing hydrogen production processes.
While the company is already investing in the manufacturing of graphene-based additives for the coatings sector, it also continues to carry out comprehensive testing to reinforce the significant performance improvement in epoxy coatings via the use of its additives.
Work is also underway to develop a number of graphene based coatings with applications in the energy sector as well as a hard carbon production process to support the sodium-ion battery sector.
This article was developed in collaboration with Sparc Technologies, 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.