Emerging renewables player and legacy sawmill operator, Sweetman Renewables, is understood to have inked a $15 million joint venture with Singapore’s CAC-H2 to establish a hydrogen production centre of excellence in NSW’s Hunter Valley.
The company, which acquired the NSW-based 100-year-old sawmill business formerly owned by the Sweetman family, is currently conducting a pre-IPO funding round ahead of an ASX listing. Barclay Pearce Capital is managing the raise.
The business intends to leverage its profitable timber business into becoming a renewable energy player through the advent of biomass and green hydrogen.
As part of the joint venture with CAC-H2, Sweetman will provide 30,000 tonnes of wood biomass per annum. Based on a conservative wholesale price of $6 per kilogram, the JV is expected to generate $170 million in revenue over 15 years.
Sweetman will own 20 per cent of the new venture in exchange for providing biomass feedstock, engineering services and land access, while CAC-H2 will own 80 per cent and is providing the initial investment for the establishment of the first two production lines at its new centre of excellence, which will be called Hunter Valley One.
Sweetman has also recently put pen to paper on a 20-year, $US90 million woodchip supply contract with a Japanese conglomerate.