High Peak Royalties Ltd acquires royalty on green hydrogen project

In addition to diversifying the existing royalty portfolio, this agreement with ScimTek Hydrogen is a key step for the company to improve its environmental, social and governance (ESG) benchmarks.

() expanded its diversified royalty portfolio by entering into a Memorandum of Understanding (MOU) for investment and royalty rights with ScimTek Hydrogen Ltd.

The agreement is intended to be legally binding and provides certain rights to High Peak in exchange for a purchase price of $ 300,000, which includes a 1% royalty on sales of ScimTek Hydrogen products capped at $ 30 million. .

This is a key move by High Peak to advance its environmental, social and governance (ESG) goals by purchasing a royalty on emerging green hydrogen technology.

In particular, the acquisition by the company of the royalty for the green hydrogen project broadens and diversifies the existing royalty portfolio while being consistent with its commercial strategy of acquiring royalties on quality energy projects.

“Diversify the existing portfolio”

High Peak Royalties Chairman Andrew Carroll said: “The Board of Directors has recognized investor interest in ESG projects and we are delighted to expand and diversify the existing portfolio to participate in this sector. emerging and growing activity of green hydrogen.

“We are also delighted to demonstrate that royalties are a viable way to fund R&D and energy technology projects.

“We look forward to being able to report progress on this project in due course. “

Right of first refusal

One of the key terms of the agreement with ScimTek is the establishment of a right of first refusal (ROFR) for marketing whereby ScimTek must not undertake a capital increase without having previously notified High Peak and a period first offer for consideration by High Peak. .

This allows the company to have future opportunities to strengthen the direct exposure of the project through ROFR in the financing of the overall project in the facilities of pilot and commercial scale plants.

In addition, High Peak has the right to verify and inspect royalty calculations, which are to be calculated over standard six-month accounting periods ending June 30 and December 31.

New catalyst

ScimTek Hydrogen was formed as a 50/50 joint venture between Scimita Ventures Pty Ltd and Kinaltek Pty Ltd.

The ScimTek project is expected to reduce the cost of producing hydrogen through steam bio-methane reforming (SBR) and steam methane reforming (SMR) processes.

The company has advanced business plans to use the new catalyst in the transportation industry by using landfill gas to produce green hydrogen to power buses and trucks in the transportation network.

ScimTek CEO Mobin Nomvar said: “We are delighted to include HPR as a partner in this project.

“The development of a new catalyst will make green hydrogen more cost effective as it is used as a clean transportation fuel in Australia.”

– Ephrems Joseph

Source link

Previous Online Thrift Store Poshmark CEO Sees Fashion Shift As Consumers "Purge" Closets - NBC10 Philadelphia
Next Edgewood Celebrity Golf and Charitable Donations

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *