Site Purchased for Proposed Hydrogen Refinery Project
Environmental Clean Technologies Limited (ASX: ECT) (“ECT” or the “Company”) is pleased to announce the purchase of a site, suitable for the deployment of its proposed headline hydrogen refinery project in Victoria’s Latrobe Valley (the Project), which is aimed at delivering net-zero emission hydrogen, agricultural char and other valuable products.
- Binding contract of sale for the purchase of property at Yallourn Drive, Yallourn
- Ideal location adjacent Yallourn mine and power station, providing access to lignite1
- Purchase supports recent Clean Hydrogen Industrial Hub grant application
The property, located immediately adjacent to the Yallourn mine and power station, will host the Project, which was outlined in ECT's announcement on 15 November 2021, titled “ECT Commences Full Feasibility for its Headline Project”. Covering an area of 4.2Ha, the property (shown below) will allow the Company to progress its full feasibility study with the confidence that work may start on this site at ECT’s discretion, as and when feasibility results drive activities. The property is also near the T15/16 upgrade project that has been jointly funded by ECT and the owner of Yallourn mine and power station, EnergyAustralia.
Image: Overview of the Yallourn power station, with the recently purchased property highlighted (site) in proximity to the current lignite terminal upgrade (T15/16).
The suitability of the site is reinforced by the fact a previous lignite de-watering and briquetting project in 2013 underwent significant site feasibility and planning approvals. Although this project did not proceed, planning documents are being shared with ECT by the vendor. The site also includes the formerly named “Powerhouse Hotel” building, leveraging existing infrastructure to provide office space, training and laboratory facilities for the Project.
The property acquisition also supports the Company’s application under the Federal Government’s Clean Hydrogen Industrial Hub grant program, which was submitted yesterday. The Federal Government expects to complete first round reviews in March 2022. In putting this grant application together, ECT has now developed a short-form feasibility document for the Project (the Project Pack) which is critical in developing and solidifying relationships essential to the full feasibility study, including, financial, off-take, technical, engineering and construction partners.
In the coming months, in addition to providing the framework for the full feasibility plan, the Project Pack will help structure discussions with the proposed partners, as roles and relationships are formalised.
Managing Director Glenn Fozard commented:
“This is an exciting day for ECT as we move one step closer to realising the dream of helping transition Victoria’s vast world-class lignite resource away from its traditional high emission use, toward low and zero-emission applications that can deliver a range of economic and environmental outcomes.”
The Company looks forward to providing further updates as activities progress.
- Vendor: Essendon Wilson Investments P/L which is not a related party to ECT.
- Purchase price of $950,000 to be satisfied via a $475,000 cash payment (funded from existing working capital) and the transfer of 25 million fully paid ordinary shares in ECT.
- The consideration shares will be transferred from the facility established to pay for equipment and contractors as announced on 18 May 2020 and 18 June 2020. As a result, no new shares will be issued. The shares in this facility were issued at 1c per share.
- Negotiations on price for this land commenced in October where the 25 million shares at 1.9c, equated to a 25% discount to the market price at the time which was 2.6c.
- Shares will be transferred from Iain McEwin, acting as the custodian, to the vendor and will be subject to voluntary escrow for 6 months post settlement.
- Settlement is conditional on updated s32 certificate, 14 days’ due diligence and receipt of satisfactory EPA contamination report.
- Settlement 90 days (expected late February 2022).
This announcement is authorised for release to the ASX by the Board.
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