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- Sparc Technologies (SPN) enters into binding agreements with Fortescue Future Industries (FFI) and the University of Adelaide (UoA)
- In October, Sparc and the UoA entered a joint venture called Sparc Hydrogen to produce ultra-green hydrogen using technology developed by the university
- Sparc Hydrogen will develop a process known as Thermo-Photocatalysis which uses the sun’s radiation and thermal properties to convert water into hydrogen and oxygen
- Following the stage one investment, Sparc will hold 52 per cent of Sparc Hydrogen, the UoA will hold 28 per cent and FFI will hold 20 per cent
- Sparc is down 3.03 per cent on the market with shares trading at $1.60
Sparc Technologies (SPN) has entered into binding agreements with Fortescue Future Industries (FFI) and the University of Adelaide (UoA).
FFI, which is a subsidiary of Fortescue Metals (FMG), is a global green energy and product company that produces zero-emission green hydrogen from renewable sources.
These agreements are the formalisation of the joint venture announced in October with the UoA.
This joint venture saw Sparc and the UoA form a joint venture called Sparc Hydrogen to produce commercially viable ultra-green hydrogen using technology developed by the university.
The Sparc Green Hydrogen Project will seek to further develop a process known as Thermo-Photocatalysis which uses the sun’s radiation and thermal properties to convert water into hydrogen and oxygen.
By using this technology, wind farms and solar panels aren’t needed and capital and operating costs are reduced.
“There is irrefutable scientific evidence that the planet is warming. Green hydrogen is a practical, implementable solution to decarbonise hard to abate sectors, including heavy industry,” FFI CEO Julie Shuttleworth said.
“The research being undertaken by Sparc Hydrogen is important for FFI’s growing technology portfolio as we develop technologies to lower emissions globally.”
Following the stage one investment, Sparc will hold 52 per cent of Sparc Hydrogen, the UoA will hold 28 per cent and FFI will hold 20 per cent.
When moving to stage two, Sparc and FFI will hold 36 per cent, while the UoA will keep its 28 per cent holding.
Sparc and the UoA have entered a research agreement in respect of stage one, triggering an initial payment of $962,000 from Sparc to Sparc Hydrogen and then to the UoA.
Roughly $512,000 will be reimbursed to Sparc by the initial funding contributed by FFI.
Additionally, FFI will subscribe for shares in Sparc Hydrogen under a subscription agreement with Sparc to issue three million shares to the UoA.
Sparc was down 3.03 per cent on the market, with shares trading at $1.60 at 11:38 am AEDT.
