ReNu Energy Limited (ReNu Energy) (ASX: RNE) is pleased to advise that it has entered into a Share Purchase Agreement to acquire 100% of the issued capital of Australian green hydrogen business, Countrywide Renewable Hydrogen Limited.

ReNu Energy will acquire CRH through the issue of 134,659,520 fully paid ordinary shares at $0.0688 per share.

Highlights

Share Purchase Agreement signed to acquire 100% of Countrywide Renewable Hydrogen (CRH) through the issue of 134,659,520 fully paid ordinary shares at $0.0688 each.

CRH is an Australian company that originates Green Hydrogen projects to develop them in collaboration with project partners and governments.

Transaction provides access to the growing Green Hydrogen industry through three Australian onshore Green Hydrogen opportunities under initiation with state governments and large partners.

CRH also has a pipeline of opportunities in Canada and the USA.

CRH targets domestic supply with a view to expand projects for future export demand.

Business model is to retain equity through project development and into revenue generation.

100% scrip acquisition preserves ReNu Energy's cash. CRH will be debt free at completion with capital on hand to progress its opportunities.

Acquisition includes proposed appointment of CRH's Managing Director, Mr Geoffrey Drucker and Nonexecutive Chair, Ms Susan Oliver AM to ReNu Energy's Board of Directors.

Pricing represents ReNu Energy's 10-day volume weighted average price (VWAP) prior to entering into the Share Purchase Agreement. The acquisition of CRH is targeted to complete in December 2021 subject to satisfaction of various completion conditions precedent, including approval by ReNu Energy shareholders.

CRH opportunity and investment rationale

CRH originates green hydrogen projects with a view to developing them in collaboration with project partners and governments, initially targeting domestic requirements and where viable, expanding the projects to meet future export demand. CRH's business model is to retain equity in each project as it moves through development, into production and revenue generation

The transaction: Provides access to the growing green hydrogen industry through three Australian onshore green hydrogen opportunities under initiation with state governments and large partners, and a pipeline of early-stage opportunities in Canada and the USA.

Recognises that the time invested and extent of the relationships the CRH founders have developed in each of the three Australian onshore green hydrogen opportunities over several years cannot be easily replicated by new entrants.

Provides a point of differentiation with the initial focus being on domestic supply.

Comes with no debt and positive working capital to progress the green hydrogen opportunities in the short term. The current Australian pipeline of CRH opportunities is: Green hydrogen in northwest Tasmania incorporating a 10MW pilot project targeting production of 4.5 tonnes per day of hydrogen for domestic use.

Green hydrogen production and vehicle refuelling in Melbourne's northern suburbs (Melbourne Hydrogen Hub) with injection into the natural gas network.

Green hydrogen at Portland in Victoria's southwest, stage 1 of which is a proposed 10MW electrolyser supplying hydrogen to the local mobility and gas markets.

To progress these opportunities CRH has collaboration agreements in place with several large companies (including ASX 100 listed entities) interested in providing renewable energy, land and taking green hydrogen produced by the projects for use in mobility (such as in trucks and buses), power generation, natural gas decarbonisation and materials handling. These collaboration agreements are non-binding, strategic framework documents which are intended to be converted into definitive arrangements as proposed project opportunities progress commercially. CRH is also building a pipeline of offshore opportunities in Atlantic Canada and Pacific northwest USA.

Board appointments

On completion of the acquisition, ReNu Energy will appoint two members to the ReNu Energy Board of Directors nominated by CRH. CRH proposes to nominate current Managing Director Mr Geoffrey Drucker as an Executive Director and CRH's Non-executive Chair Ms Susan Oliver AM as a Non-executive Director. Mr Drucker has extensive expertise in the renewable sector including renewable project initiation experience. He commenced his energy career with State Electricity Commission of Victoria and has held roles with PwC and several private consultancies. Ms Oliver AM has extensive Board and governance experience with ASXlisted companies and also serves on the Investment Committee for IFM investors, was the Founding Chair of Scale Investors, and now chairs the Alice Anderson Fund investment committee for the Victorian Government. She was awarded an Order of Australia for services to business and women

Contact:

Greg Watson

Tel: 61 7 3721 7500

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