ReNu Energy and German multinational WIRCON Group to probe green hydrogen potential

Mon 05 Sep 22, 10:43am (AEST)
A PV solar panel faces the photographer underneath a blue sky
Source: Unsplash

Key Points

  • ReNu Energy’s wholly owned subsidiary Countrywide Hydrogen executes non-binding agreement with Germany’s WIRCON Group
  • WIRCON Group owns Australia’s WIRSOL Energy; a solar player
  • Both players will explore the opportunity of using solar to produce hydrogen in Australia, thereby producing green hydrogen '

ReNu Energy’s (ASX:RNE) ongoing plans to become one of Australia’s first green hydrogen producers now has another endorsement from an industry heavyweight to boast, with the company teaming up with Germany’s solar multinational WIRCON Group to explore potential synergies. 

ReNu Energy is intending to begin producing green hydrogen domestically in Tasmania by as early as 2024. When it first announced those plans, the company’s share price was sent up over 30%. 

Not long after, ReNu revealed it had won the support of TasGas, the southernmost state’s largest utility, with the latter to begin looking at its pipeline network and getting ready for a future where ReNu’s green hydrogen will be blended into conventional gas mixes. 

Then, last month, ReNu Energy announced it was quietly negotiating offtake agreements for its Green Hydrogen, and that the production schedule had actually been brought forward. ReNu now expects to begin producing green hydrogen by late 2023. 

WIRSOL Energy to scope possible solar, battery placement

Today’s agreement, on the whole, is fairly brief in nature. 

WIRSOL Energy will work with ReNu Energy to assess the latter’s two Tasmanian hydrogen projects, and figure out where, should it move ahead, solar panels and battery storage power solutions would be best placed.

While today’s agreement is not intended to be legally binding, the move does come as a testament to ReNu’s ability to garner attention and support from international counterparts with its plans for the Tasmanian energy sector.

Who is WIRCON Group? 

WIRCON Group is a solar multinational headquartered in Germany. It is the owner of WIRSOL Solar AG, which effectively acts as the group vehicle for penetration into international power markets. 

WIRSOL Energy, in turn, is the group’s Australian vehicle, registered in NSW in 2017. 

ReNu notes WIRSOL Energy has been active in Australia since 2016 and already owns a number of solar farms domestically on the east coast, though, the company has no assets in Tasmania. 

Worth noting is ReNu Energy also reference a potential future where its Countrywide Hydrogen would boost its presence across WIRSOL Energy’s existing solar plants; thereby giving the former a foothold in the mainland eastern states. 

Probing possible co-location 

“We are excited…to determine if it’s feasible to co-locate Countrywide Hydrogen production facilities on WIRSOL’s established solar farms,” ReNu Energy executive director Geoffrey Drucker said. 

“With an established solar development track record, we reached out to WIRSOL to determine their interest in co-developing solar to hydrogen projects.” 

“They will be assessing the solar to hydrogen potential of our projects in Tasmania.” 

ReNu’s top dog Greg Watson was more focused on cost profiles. 

“This agreement allows us to assess options for the lowest cost of energy for hydrogen production at our Tasmanian projects,” Watson commented. 

ReNu Energy's six month charts
ReNu Energy's six month charts

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. ReNu Energy was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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