Metgasco to acquire Patriot Hydrogen
Metgasco executed a binding term sheet for a phased investment to acquire Patriot Hydrogen, a developer of modular waste to hydrogen production projects.
Metgasco Limited (MEL) has agreed to a staged acquisition of Patriot Hydrogen Limited (Patriot), a renewable hydrogen and energy developer with near-term production, with certain technical and commercial milestones.
Patriot has a framework agreement, including Australian market exclusivity undertakings, with a regional technology partner to develop hydrogen production projects in Australia, with proven market demand.
The first commercial plant commissioning for Kimberley Clean Energy Pty Ltd (KCE) is expected in Q4 CY22, part of a comprehensive MOU to deliver up to 75 units to KCE in support of remote power needs in Northern Australia.
The acquisition forms part of Metgasco’s diversification strategy, delivering a sustainable, commercially attractive and carbon net zero opportunity while potentially offsetting emissions associated with the company’s core natural gas production assets.
Ken Aitken, Metgasco Managing Director, said, “With completion of the recent Cooper Basin sub-surface program and gas production at Vali due to start in the fourth quarter of this year, the acquisition of Patriot should enable us to offset these emissions while also delivering a compelling standalone commercial opportunity.”
Patriot is a waste-to-energy project developer with access to pyrolysis and gasification system technology (supported by market exclusivity arrangements with its relevant technology partner) that takes biomass and converts it into energy.
The modular units can power remote communities and operations where appropriate feedstock is available, making them scalable across a wide range of industries looking to reduce emissions intensity or transition from diesel-powered generation. Metgasco shares Patriot’s enthusiasm for this potential and will bring its engineering, project management and corporate experience and skills to bear to optimise and deliver on the large pipeline of commercial opportunities Patriot has developed.