IGE completes Northam Solar Farm acquisition, targets commercial output in 2024February 2nd, 2023
Australia’s first commercial-scale green hydrogen project is planned to commence production in the last quarter of 2024, after Infinite Green Energy (IGE) completed the acquisition of Perth’s Northam Solar Farm and signed its first offtake contract this week.
The completion of the $8million Northam deal, funded by debt and investor capital, will allow IGE to leverage the 11MW solar farm to produce four tonnes a day of renewable hydrogen via electrolysis.
The hydrogen output will initially power Fuel Cell Electric Vehicle (FCEV) truck fleets for several key back to base customers, with the first binding supply agreement, signed yesterday (1/2/23) with a Western Australian waste to energy refuge collection company.
Infinite Green Energy, chaired by former Woodside CEO Peter Coleman, will immediately commence a $3million capital raising to fund production capacity of the Northam project (MEG HP1) and the pathway towards planned production of the company’s flagship, 23 tonne/day Arrowsmith project.
Mr Coleman said the strategic acquisition of the Northam Solar Farm and capital raising would allow IGE to progress the Northam project to final investment decision. The company plans to expand the Northam Solar Farm capacity to 18MW and connect a 10MW electrolyser for green hydrogen production in the second half of 2024.
In the meantime, he said, IGE would benefit from the Northam asset’s existing Power Purchase Agreement (PPA), which delivered immediate revenue to shareholders.
“The Northam Solar Farm was acquired through a competitive tender process for $8million with today’s replacement cost of the asset being $18million,” Mr Coleman said.
“With the security of a PPA in place, our clear path to initial production in 2024 will demonstrate the plant and help to initiate a market for green hydrogen in the commercial mobility sector in Western Australia.
“This completed acquisition of Northam will see the business producing at scale in an Australian first and cement IGE as the first and biggest commercial producer of green hydrogen.”
IGE founder and CEO Stephen Gauld said the business would promote the hydrogen ecosystem in Western Australia by supplying contracted customers and local fuel stations with green hydrogen, which was expected to facilitate FCEV demand in the local transport industry.
“We have our first contracted customer and six MOUs from other transport companies in Western Australia,” Mr Gauld said.
Chloé Argyle of éthica capital to manage the capital raising, which is reserved for sophisticated investors.
Ms Argyle said the company’s offer aimed to raise $3million, with oversubscriptions at its discretion, via the issue of 1.5million new ordinary shares at AUD$2.
News photographs of Mr Coleman and Mr Gauld at the Northam Solar Farm are available on request.
Media enquiries: éthica Capital