London-listed cash shell Net Zero Infrastructure LON:NZI has signed a non-binding letter of intent to acquire the entire issued share capital of LINE Hydrogen (Australia) Pty Limited. This paves the way for LINE Hydrogen to become listed on the London Stock Exchange.
Shares in Net Zero Infrastructure were suspended on Thursday. The acquisition is also contingent on a further private fund raise by the new entity, details of which are to be circulated. The suspension of the shares follows the UK regulations for a reverse takeover, pending the publication of a prospectus.
LINE Hydrogen is an Australian-based hydrogen production company which specialises in the production, distribution and storage of hydrogen for various applications.
“Joining forces with LINE Hydrogen means we can leverage our joint resources with a view to expanding operations and driving the development of the green energy sector,” explained Mike Ellwood, Chairman of NZI. “Together, we believe that we are well-positioned to capitalize on the growth potential in this market and contribute to a more sustainable future.”
Large scale hydrogen production in Australia
LINE Hydrogen is working on what it describes as “cost effective large-scale hydrogen production” in Australia. It is seeking to simplify hydrogen and its production processes, and focus on closing the loop between the producers and the end‑users. It has a number of projects underway already, including the George Town Project in Tasmania, which has a capacity of 1.69t of H2 per day when it comes online later this year, and which can scale up to 14.9t H2/day over nine years.
The company is also working on another project in Queensland to provide low cost hydrogen to haulage fleets in the state, and has an MOU with Blue Cap Mining to help develop Australia’s first zero emissions mine in Western Australia’s gold fields. Scheduled to commence in December 2024, the Lord Byron project will produce 893,000kg of green hydrogen per annum.
“Positive impact on energy landscape”
“The planned merger reflects our shared vision of advancing the hydrogen economy and accelerating the adoption of clean energy solutions,” said Brendan James, Founder of LINE Hydrogen. “We believe that, by combining our strengths and expertise, we can create significant value for our shareholders and make a positive impact on the global energy landscape.”
Net Zero Infrastructure is one of a rapidly diminishing number of small cash shell opportunities still available on the main market in London. The cash shell – or SPAC – was originally listed to provide an avenue for companies in the clean energy sector to listed smoothly on the London Stock Exchange.
Pineapple Power, another listed cash shell, is also in the process of completing an RTO with a hydrogen opportunity. In this case the target company was Element 2, the leading hydrogen refuelling business in the UK. Element 2 is currently investing in prime locations across the UK and Ireland to support the growth of the hydrogen economy, especially road transport. The company has already established strategic hydrogen refuelling sites along critical haulage routes across the country.
