Sparc close to proving green hydrogen tech’s economic credentials
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Sparc will soon have a clearer picture of the economics of the unique photocatalytic green hydrogen production technology it is developing with Fortescue Future Industries and the University of Adelaide.
The preliminary Techno Economic Assessment (TEA) remains on track for delivery in the current quarter with a specialist engineering consultant engaged to complete gap analysis and costing review for the study.
Sparc Technologies (ASX:SPN) expects the TEA to demonstrate the relationship between Solar to Hydrogen efficiency (STH %), expected to be within the ranges targeted in the research and development phase, and the Levelised Cost of Hydrogen (LCOH).
Multiple options to optimise the system and opportunities for future development have been identified through completing the preliminary TEA which will be updated as R&D work progresses.
The photocatalytic tech uses a catalyst exposed to direct sunlight to convert water into hydrogen and oxygen, eschewing the need for wind farms or massive arrays of solar panels that are required for traditional electrolysis.
This is expected to drastically lower costs with the joint venture flagging its goal of producing within 4.5 years green hydrogen at or below the $2 per kg price point where it is considered to be competitive with fossil hydrogen.
“Sparc is pleased to report that significant progress is being made with the Sparc Hydrogen JV and importantly, the release of the preliminary TEA is on track to be delivered this quarter,” executive chairman Stephen Hunt said.
“Developments with the project continue to be very positive on a number of fronts and in particular in relation to the economic benefits that this game-changing technology may deliver.”
Research continues to demonstrate advances in STH% under a range of conditions in the solar reactor.
Various reactor designs have also been developed and tested with a focus on improving reaction rates and gas flow.
Sparc is also leveraging its significant coatings expertise to develop a more durable and better adhered photocatalyst coating.
Should a successful coating be developed, this will be a potential intellectual property opportunity for the company.
A patent application for the photocatalytic hydrogen production technology was lodged in the second quarter with opportunities for other patent application filings relating to additional photocatalytic equipment being explored.
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.