MOU signed for market development of renewable fuels.
- MOU with multi-utility Enwave Australia
- Joint initiative to develop markets, initially worth $4billion
- Field trial to inject gas into Victorian system
- Focus on renewable hydrogen and renewable methane
Southern Green Gas (SGG) is pleased to announce it has entered into a Memorandum of Understanding with Enwave Australia for the conduct of a field trail and potentially a subsequent joint market development.
The proposed field trial will initially involve the production of renewable hydrogen comprising water production from air and electrolysis from solar power. At a later date the intention is to expand the field trial to include CO2 production from air and combining hydrogen and CO2 in a methanation reactor to produce pipeline quality renewable methane.
The field trial is proposed to be located at one of Enwave’s Victorian Network sites in regional Victoria.
Subject to success of the field trial, SGG and Enwave may further enter into a Market Development Agreement, where they may jointly pursue Australian renewable gas market opportunities – both hydrogen and methane – using SGG’s technology. This could involve market research and discussions with potential customers, to understand the requirements and size and growth of the market.
Commenting on the agreement, Southern Green Gas’ Managing Director Rohan Gillespie stated “This is an exciting development for SGG. Enwave Australia is a multi-utility that designs, builds, owns and operates water, gas and energy networks for entire communities in Australia. They acknowledge the growing desire of energy users to consider lower carbon-intensive sources, and are well placed to service this demand.”
About Southern Green Gas
SGG is joint venturing with the $11billion APA Group, which owns the majority of gas pipelines in Australia. The joint venture is part of their New Energy initiative as detailed in their 2019 Sustainability Report.
SGG now seeks $0.3m-$1.0m in pre-IPO funding, primarily to fund the remaining portion of the renewable methane module development, followed by a further $5m (to be confirmed) at IPO to fund full commercial rollout. The IPO is scheduled for Q3 2020. The pre-IPO funding is being raised via the issue of ordinary shares at $0.50 per share. This represents a pre-money valuation of $4m.