Sparc’s ultra green hydro-tech draws investment, fascination from Andrew Forrest
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Sparc has received a vote of confidence from mining magnate Andrew Forrest’s Fortescue Future Industries, which is taking a stake in the new Sparc Hydrogen joint venture.
The green arm of Fortescue Metals Group has been driving aggressively to push green initiatives – including the spending of US$223m to acquire high performance battery business Williams Advanced Engineering, so its move to take an initial 20% interest in the JV is a clear sign that Sparc’s on the right track.
Sparc Technologies’ (ASX:SPN) Sparc Hydrogen JV is seeking to produce commercially viable ultra green hydrogen using a photocatalysis technology developed by the University of Adelaide (UoA) and Flinders University.
“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,” executive chairman Stephen Hunt said.
“FFI is very well placed to assist the development and commercialisation of Sparc Hydrogen’s green hydrogen photocatalytic technology.”
“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,” UoA executive director innovation and commercial Dr Stephen Rodda added.
FFI chief executive officer Julie Shuttleworth noted green hydrogen offered 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,” she added.
FFI is paying $1.8m in Stage 1 for its 20% stake while Sparc will pay $450,000 and 3 million shares to the two universities for its 52% interest. The remaining 28% will be held by the UoA.
Under Stage 2, FFI can spend a further $1.475m to earn another 16% in the JV while Sparc will pay $1.025m and reduce its interest to 36%.
Sparc Hydrogen’s Thermo-Photocatalysis process uses the Sun’s radiation and thermal properties to convert water into hydrogen and oxygen without the need for photovoltaic solar panels and expensive electrolysers.
This is expected to significantly reduce capital and operating expenditure compared to electrolysis and other forms of hydrogen production currently in use.
The technology can also potentially be adopted for remote uses, which will reduce the reliance on long distance hydrogen transportation and/or electricity transmission.
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.