The $15 million deal aims to establish Australia’s first wood-fed hydrogen production plant, and the country’s largest green bio-hydrogen production eco-hub.

The JV involves investment from CAC-H₂ will, in return for 80% ownership of the new enterprise, help establish the first two production lines on a 30-acre site adjacent to the Sweetman’s Millfield timber mill.

CAC-H₂ brings proven gasification technology that converts woodchip into 99.999% pure hydrogen via a proven proprietary process – along with off-take agreements for 100% of Sweetman hydrogen and biochar production.

And Sweetman will provide the biomass feedstock, EPC engineering services and land access in return for 20% equity in the JV as well as 30,000 tonnes of wood biomass per annum.

The initial deal is expected to produce around AU$170 million in revenues over 15 years, based on a conservative wholesale price estimate of AU$6 per kilogram.

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