Australia's ReNu, Hesta team up for green hydrogen projects
SUMMARY
ReNu will identify and present green hydrogen projects to Hesta for potential co-investment based on agreed development plans and milestones.
By Shardul SharmaReNu Energy on June 7 said it has signed a platform agreement with H.E.S.T. Australia (Hesta), a superannuation fund, to evaluate and potentially co-invest in green hydrogen projects. The agreement outlines the framework for co-investment, with ReNu Energy responsible for project development and operation.
Under the agreement, ReNu will identify and present green hydrogen projects to Hesta for potential co-investment based on agreed development plans and milestones. If both parties decide to proceed with a project, they will establish a project-specific trust, jointly acquire the project, and invest in an asset vehicle on a 50/50% basis. The acquisition price will be the aggregate development costs incurred by ReNu up to the time of acquisition.
ReNu will be entitled to a development fee and will be responsible for securing debt and grant funding for the projects. They will also handle the development, construction, and day-to-day operations of the projects in line with Hesta's ESG policies.
The platform agreement includes exclusivity arrangements, granting Hesta the first right of refusal over all green hydrogen project opportunities presented by ReNu.
The platform agreement will continue until terminated and contains provisions for exclusivity and notice periods. It aims to support the development of a pipeline of projects while contributing to a lower carbon future.
ReNu said it intends to present its Tasmanian green hydrogen projects to Hesta for potential co-investment in 2023.
