Sparc Hydrogen (Sparc) and Fortescue Future Industries (FFI) have satisfied all conditions in their negotiations the Sparc Green Hydrogen Project—a unique process with the aim of producing commercially viable green hydrogen via photocatalysis using technology developed by the University of Adelaide and Flinders University.
FFI will now support this important research, development and commercialisation work as emerging world leaders in green hydrogen technology and production.
Sparc executive chair Stephen Hunt said, “Sparc’s announcement last week was the culmination of over four months of challenging work between the JV partners including detailed technical due diligence, negotiation and execution of a number of key agreements to form Sparc Hydrogen. It is pleasing to now have satisfied all conditions to complete the transaction and to work with FFI and UoA to further progress this exciting project.
“Furthermore, the inclusion in the JV of world leading green energy company, FFI, adds enormous value to the JV, both in terms of project development, technology and commercialisation capabilities. These attributes combined with UoA’s research experience and unique skills with photocatalytic water splitting, together with Sparc’s project management and graphene expertise, makes for a formidable combination in this transformational green energy technology.”
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The novel photocatalytic water splitting technology that Sparc Hydrogen now controls has the potential to revolutionise hydrogen production, a market projected to grow six-fold by 2050[1] from US$150 billion currently to US$1 trillion.
Should the results from the staged research and development program being conducted at UoA progress as planned, Sparc Hydrogen will have an advantageous position over conventional green hydrogen developers not only potentially in terms of cost of production, but also scalability and the ability to produce hydrogen in remote, off-grid locations. Sparc Technologies is aiming to have a commercially ready technology targeting sub $2/kg production costs at the completion of the program.
Following satisfaction of all conditions between the three parties, the Stage 1 interests in respect of Sparc Hydrogen JV is Sparc 52 per cent, UoA 28 per cent, and FFI 20 per cent.
Additionally, while the agreements with UoA and FFI were being negotiated over the past four months, project work commenced December 1, 2021. Progress to date includes:
- Key equipment for the project was ordered in December. Delivery is expected in March/April 2022.
- A preliminary Techno Economic Assessment (TEA) of the technology has commenced. This is expected to demonstrate the strong economic potential of the technology subject to the achievement of certain solar to hydrogen efficiency (STH%) improvements from ongoing research and development work.
- Sparc collaborating with the UoA with the aim to develop graphene related materials to enhance the production of commercially viable green hydrogen via photocatalysis.
- The reimbursement from Sparc Hydrogen to Sparc Technologies of $510,000 will be made out of FFI’s initial payment.
