Sweetman Renewables is undertaking a $2.5m pre-IPO raise to help set it up to make its ASX debut down the track.
The company is working to elevate its revenue base tenfold with its expansion to three divisions covering hydrogen production, biomass supply and selling high-quality timber products.
Right now, over 99 per cent of hydrogen produced is made using fossil fuels, which governments around the world are working rapidly to change as they strive to meet their net zero emissions targets.
This is where Sweetman has an edge over the competition. The company plans to convert waste wood and biomass into ‘green’ energy to supply the rapidly growing global hydrogen market.
Green hydrogen is the preferred alternative because it is produced using non-fossil fuel sources, or renewables, which means it will fetch a premium price.
Sweetman will convert waste biomass into green hydrogen for domestic use using a pyrolysis thermal recovery unit. The modular unit will produce both hydrogen and biochar – a stable, carbon-rich form of charcoal used to increase soil fertility – with each unit consuming 50 tonnes of biomass residues a day.
Sweetman Renewables’ Sweetman Biomass division previously secured a lucrative long-term contract to supply waste wood biomass to Verdant Earth Technologies Limited’s $A550m 151MW Green renewable energy power station at Warkworth, NSW.
Early supplies of biomass may by exported from Newcastle to Japanese biomass power stations ahead of the commencement of the Warkworth power station, which will be the third largest renewable baseload power station in Australia after the Snowy Hydro scheme and Hydro Tasmania.
Hunter-based Sweetman Renewables is establishing itself as a hydrogen contender at the same time governments continue to inject cash into the emerging industry.
Just this week Australian Prime Minister Scott Morrison pledged a $540m commitment to creating regional hydrogen hubs and carbon capture and storage projects. This is in addition to the previously announced $70m commitment over five years to boost the hydrogen industry.
The NSW government estimates green hydrogen could potentially drive $350bn in new investment across Australia and boost the country’s GDP by $26bn each year.
The Illawarra and Hunter regions in particular have been pinpointed as ideal locations for hydrogen hubs given their access to existing energy infrastructure, ports and future renewable energy resources.
Goldman Sachs estimates green hydrogen will supply up to 25 per cent of the world’s energy needs by 2050, making it a $US10 trillion market globally.