Hexagon raises $6.2m to advance key blue hydrogen study
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Hexagon is now funded to accelerate the pre-feasibility study for its Pedirka blue hydrogen project in the Northern Territory after completing a $6.2m placement.
The placement of shares priced at 11c each – representing a 9.5 per cent discount to the 30-day volume weighted average price of its shares – also highlights the strong support from institutional and sophisticated investors.
“We were delighted at the very strong level of interest shown by both existing and new investors in this capital raise opportunity, and I would like to thank 180 Markets for their efficient management of the bookbuild process,” Hexagon Energy Materials’ (ASX:HXG) chairman Charles Whitfield said.
“With this capital in place the work on Pedirka can be accelerated and the team is exceptionally excited about the months ahead.”
The Pedirka project covers 800sqkm of coal tenements about 200km southeast of Alice Springs in the Northern Territory’s Pedirka Basin.
Hexagon plans to extract the coal as feedstock for a gasification plant that will produce hydrogen from coal for export or domestic markets.
With its proximity to existing oil and gas infrastructure offering advantages for large scale hydrogen production, the company will use a zero-carbon emissions steam reformation process to produce clean hydrogen.
Carbon dioxide emissions will be captured and sequestered underground or used for enhanced oil recovery projects.
The company has held several meetings with Technip Energies subsidiary Genesis with respect to the scope and format of the PFS towards formalisation of project planning and PFS timing.
It noted that these discussions have already highlighted substantial cost savings for the PFS program from initial budget estimates which significantly lowered the amount of funding required to complete the study.
This article was developed in collaboration with Hexagon Energy Materials, 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.