ECT could see share price rise on backing for net-zero hydrogen technology

Australian green tech company Environmental Clean Technologies (ASX: ECT) has obtained robust support from investors for its flagship Bacchus Marsh production facility, dedicated to the net-zero production of syngas.

The project has just obtained $1.5 million from investors to further advance development of the undertaking situated in the Latrobe Valley of Victoria.

Bacchus Marsh development kicks off at end of 2023

Plans for the Bacchus Marsh syngas pilot project first gathered momentum in the final quarter of 2023, with goals for the net-zero production of syngas-derived products.

Syngas is a mixture of hydrogen and carbon monoxide in various ratios, which can also contain carbon dioxide and methane.

Given its combustable nature syngas can be used as a fuel, as well as an input for the production of ammonia or methanol.

ECT's Bacchas Marsh syngas project hopes to exploit the commercial potential of the natural resource while minimising adverse climate impact

At the centre of the project is Coldry Technology, which comprises the core of the raw material processing system situated within the site's integrated operating plant.

According to ECT, Coldry will permit the low-cost, zero-emission dewatering and drying of incoming lignite and biomass streams at the Bacchus Marsh site.

The byproducts will then be fed into a thermochemical decarbonisation process, in order to generate two major product outputs:

• Hydrogen-rich syngas, which contains other valuable industrial gases for downstream use, and;

• A char product containing most of the incoming carbon in solid form.

The hydrogen-rich syngas has a broad range of important commercial applications, including the production of hydrogen, formic acid and power generation.

Formic acid is a particularly important industrial chemical with key applications in the agricultural sector, where it serves as a preservative and antibacterial agent for livestock feed. Demand for formic acid is especially strong in the region given the size and rapid growth of Australia's neighbouring Asia-Pacific economies.

ECT aims for flexible product generation

ECT's executives view the Bacchas Marsh pilot project as an example of net-zero use of natural resources for the flexible generation of varied product mix.

During the first phase of the project, the facility will be able to switch from formic acid production to electricity generation in order to cater to upswings in power demand. This will help provide a low-carbon alternative to conventional lignite power generation, helping to reduce its carbon footprint. ECT eventually hopes to transition from syngas-fired electricity to 100% hydrogen-based electricity.

ECT said the eventual goal is to establish a new regional hydrogen hub that is underpinned by the proposed commercial-scale hydrogen refinery, and can deliver substantial economic value and employment to the region.

Strategic investors provide $1.5 million vote of confidence

ECT recently announced that it had managed to expand its war chest by $1.5 million thanks to a placement with strategic investors.

Funds raised via the placement will mainly be used to further support development at the Bacchus Marsh facility as well as explore potential new commercial activities.

'The strong backing from both existing and new shareholders, especially in challenging market conditions, underscores the significant progress made by ECT and the growing investor interest in our net zero and carbon negative process,' ECT managing director Sam Rizzo said.

'ECT remains focused on executing its 'race to revenue' strategy, aiming to establish a revenue stream from the Bacchus Marsh plant.

'Additionally, this project presents an opportunity for ECT to conduct a syngas pilot project, validating net zero, carbon-negative energy feedstock," he said.

'We're committed to advancing our three pillars: agriculture products, net zero and carbon-negative energy feedstock, and industrial applications.'

In addition to the backing strategic investors, ECT points out it qualifies for funding support from a range of both federal and state government initiatives hydrogen-industry climate projects. These include InvestVictoria, the Clean Hydrogen Industrial Hubs program, and the Low Emissions Technology Commercialisation Fund.

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