Sparc announce in Feb 2022 the creation of Sparc Hydrogen Joint Venture with University of Adelaide, Flinders University (minor partner with Adelaide) and Fortescue Future Industries (FFI)
Two stages of funding with % of ownership changing
Stage 1 - 28% UoA, 52% Sparc, 20% FFI Duration of stage 1 = 2 1/2 years (ends August 2024) Stage 2 duration was 2 years (ends August 2026)
Key milestones ( see below) for both Stage 1 & 2 are seemingly met 2 1/2 years ahead of schedule ?!
Requirements for Stage 2 Sparc to find $1.025 million with dilution of ownership to 36% FFI to find $1.45 million and ownership rises to 36%
Missing information :
If Sparc Hydrogen has completed Stage 1 ahead of schedule I don't recall any announcement of Stage 2 funding from either Sparc or FFI (this would total nearly $2.5 million) The milestones of Stage 1 and Stage 2 don't mention the commissioning of a pilot plant so inference is Sparc Hydrogen is over 2 years ahead of schedule ? Cost of pilot plant development and time scale for completion ? Cost of pilot plant reactor build, installation etc.. ? Cost of running pilot plant (staffing, energy, IT etc..) ? Economic feasibility of producing and selling green hydrogen reactor and estimated cost of hydrogen (possibly made difficult by both unknowns and ASX regulations)
Unknowns
Government funding (Australia Economic Accelerator Programme, CSIRO funding, Future Made in Australia Act)
*Last week's PowerPoint presentation is just fluff and has no associated costings for capital expenditure and operating expenditure. EcoSparc hasn't had a customer in over 12 months.
Stage 1 Key Milestones for Sparc Hydrogen
Develop a Technical Economic Assessment (TEA) for the Project; • Optimise thermo-photocatalytic reactor conditions; • Construct and commission a new thermo-photocatalytic reactor for full solar simulation; • Test existing and new photocatalysts in the thermo-photocatalytic reactor using full simulated solar spectrum irradiation, including determination of photocatalyst longevity and durability; and • Design a proto-type scale photo-thermal reactor for on-sun operation
Stage 2 – key milestones over the following 2 years of the Project include:
• Installation and commissioning of proto-type thermo-photocatalytic reactor with on-sun operation; and • Pre-commercial pilot scale system design, procurement, installation, commissioning and operation of thermo-photocatalytic reactor
SPN Price at posting:
28.0¢ Sentiment: Hold Disclosure: Held
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