- ReNu Energy (RNE) is set to invest up to $1.5 million in a company commercialising a biomass powered energy generator
- Pending shareholder approval, ReNu will acquire up to 20 per cent of unlisted private company, Uniflow
- The company’s ‘Cobbler’ generator runs on forestry and agricultural waste instead of fossil fuels
- ‘Cobbler’ is patented in Australia and is hoped to attract markets looking to meet emission reduction targets
- ReNu Energy shares are down 9.46 per cent and trading at 6.7 cents at 2:03 pm AEST
ReNu Energy (RNE) is set to invest up to $1.5 million into a company commercialising a biomass powered energy generator.
The acquisition forms part of ReNu Energy’s bid to advance its clean energy incubator strategy and secure its foothold in markets looking to meet emission reduction targets.
An initial $1 million is set to be invested into unlisted public company Uniflow Power to acquire a 13.3 per cent stake in the company, with a further $500,000
invested by 31 December 2021 to increase ReNu Energy’s stake to 20 per cent.
The parties affirm the Cobber generator has the potential to displace fossil fuels including diesel, petroleum, coal and kerosene by using fuels such as firewood, pellets, forestry and agricultural waste to generate thermal and electrical energy.
Patented in Australia and “major identified international markets”, Uniflow said it had also submitted applications in developed and developing economies.
According to ReNu, the initial $1 million investment will fund Uniflow’s planned Canberra demonstration project for the Cobber later this year and further research and development.
Uniflow shareholders will need to give the acquisition the tick of approval before it can go ahead, with a general meeting set to be held in Q3 2021.
ReNu Energy shares were down 13.5 per cent and trading at 6.4 cents at 2:03 pm AEST.