ASX-listed ReNu Energy will seek to raise $4.5 million by selling new stock to investors, with the funds earmarked for use to pursue its hydrogen projects in Tasmania and Indonesia, the company announced on Wednesday.
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Geoffrey Drucker, managing director of Countrywide Hydrogen - the ReNu Energy subsidiary that is managing the Tasmanian hydrogen projects - said the Tasmanian hydrogen projects included Brighton and Launceston Airport.
"The cash injection from this capital raise allows these projects to reach the next stage of development, and further progress the green energy self-sufficiency ambitions of Tasmania," he said.
The recently announced $50 million Launceston project will see construction of a small plant with production capacity of 2 tonnes of hydrogen per day.
The hydrogen will be available to fuel both airport vehicles and the freight vehicles operating out of the nearby Translink logistics hub under development at Western Junction.
ReNu's announcement however failed to make mention of Countrywide's third hydrogen project in Bell Bay.
Greg Watson, chief executive officer of ReNu Energy, said it was an "oversight" not to mention the project.
He said Countrywide was still pursuing Bell Bay, but that it needed more "traction" and likely wouldn't be the project given first priority.
"We're still committed to it, it's sort of seen as a third pillar of our hydrogen plants down there. We are just waiting for some traction there," he said.
"Our Brighton and Launceston sites - the land's secured and ready to go, so I think we will be first moving on those two projects."
ReNu Energy confirmed it received commitments from investors for nearly 76 million ordinary shares, totaling $4.5 million.
Investors will receive one attaching option for every share subscribed, with an options exercise price of $0.07 per share and an expiry date of December 2023.
The company will need to seek shareholder approval for the issue of a portion of the options, according to ReNu Energy's statement.
The deal is expected to close soon, and the new shares are scheduled to begin trading on November 29.
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