PERTH (miningweekly.com) – ASX-listed ReNu Energy has inked a term sheet with superannuation fund HESTA for the potential investment of up to A$100-million in green hydrogen projects.

“We are excited to have HESTA on board as an institutional investor in our green hydrogen projects. HESTA is recognised as a leader in responsible investment. Our task now is to advance to definitive agreements as soon as possible and progress commercial discussions with our project partners for green hydrogen offtake,” said ReNu Energy CEO Greg Watson.

The executed term sheet is a non-binding, strategic framework that is intended to be converted into definitive arrangements, subject to HESTA completing its due diligence. It sets out the parties’ intention to jointly pursue green hydrogen projects and to advance to definitive agreements.

HESTA will commit up to a$100-million for the development of green hydrogen projects, which ReNu and its subsidiary Countrywide Hydrogen, would be responsible for delivering and operating. ReNu will also be entitled to a fee for originating and progressing the green hydrogen projects.

Furthermore, ReNu will be responsible for securing debt and grant funding for the projects, while HESTA will be provided with a first right of refusal to invest in existing and new green hydrogen projects.

“We’re thrilled to be investing in the development of the group’s green hydrogen projects. We continue to look for opportunities like this to invest in innovative technologies and businesses that will support the transition to a low carbon future,” said HESTA chief investment officer Sonya Sawtell-Rickson.

“Investments like this will help create jobs and support communities, while delivering attractive risk-adjusted returns for our members. By providing innovative climate solutions, this investment will also serve our members’ best financial interests over the long term by contributing to an equitable, orderly and timely transition to net zero emissions by 2050 in order to minimise the systemic risks of climate change.”