Hydrogen

Tas Gas signs on as retailer for ReNu Energy’s green hydrogen

Fri 01 Jul 22, 1:05pm (AEST)
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Key Points

  • Utility Tas Gas signs on as retailer of ReNu’s hydrogen produced at the Brighton
  • ReNu’s first unveiling of its plans in June pushed shares up 34%
  • Tas Gas and ReNu to progress project to FID

ReNu Energy’s (ASX:RNE) shares are up 16.67% at lunch as investors absorb a deal with Tas Gas making it the retailer of ReNu’s hydrogen gas produced in Tasmania. 

ReNu announced its Brighton green hydrogen project last month, highlighting Tas Gas as a potential sales customer, sending shares up 34%. 

Term Sheet specifics 

Tas Gas will be the flagship retailer for hydrogen produced at Brighton and has the option to pick up a stake in the project.

Both players will assess technical requirements of blending hydrogen into existing natural gas pipelines, as well as pure hydrogen gas.

For ReNu, the term sheet covers four key milestones: 

  • Getting the project to Final Investment Decision (FID) 

  • Negotiating commercial terms for Tas Gas’ offtake 

  • Identifying the best pipeline routes for sales 

  • Liaising with regulators and safety officials 

What is the Brighton project? 

ReNu is targeting an electrolysis-based hydrogen production project by Q4 of 2023.

For an overview of green hydrogen, you can read Market Index’s explainer here

ReNu will use its subsidiary Countrywide Renewable Hydrogen (CRH2) to locate an electrolyser for the project. 

The company also adds its project harmonises with emissions strategies published by the Tasmanian government. Bullock Civil also stands as a partner. 

ReNu Energy's three month chart with price sensitive announcements plotted in red
ReNu Energy's three month chart with price sensitive announcements plotted in red
ReNu Energy was a Market Index client at the time of publishing. All coverage contains factual information only and should not be interpreted as opinion of 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. Email Jon at [email protected].

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