The superannuation fund HESTA has announced it will invest up to $100 million in green hydrogen projects delivered by ReNu Energy.
The two parties have now signed a non-binding term sheet – outlining material terms and conditions for the potential business agreement – for the multimillion dollar investment, supporting ReNu’s proposed green hydrogen projects.
ReNu Energy Chairman, Boyd White, said the agreement follows recent advancements in the company’s green hydrogen portfolio; including its acquisition of Countrywide Hydrogen in February 2022.
HESTA is the largest superannuation fund dedicated to Australia’s health and community services sector. An industry fund that’s run only to benefit members, HESTA has more than 950,000 members (over 80 per cent are women) and manages over $68 billion in assets invested around the world.
HESTA Chief Investment Officer, Sonya Sawtell-Rickson, said the organisation was proud to be supporting Australia’s transition to renewable energy.
“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,” Ms Sawtell-Rickson said.
“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.”
The Term Sheet outlines:
- HESTA’s intention to commit up to $100 million for the development of Green Hydrogen Projects
- The RNE Group will be responsible for delivery and operation of the Green Hydrogen Projects
- The RNE Group will be entitled to a fee for originating and progressing Green Hydrogen Projects. The agreed fee will reflect the status and progress of the relevant Green Hydrogen Project at the time HESTA invests
- The RNE Group will be responsible for securing debt and grant funding for the Green Hydrogen Projects
- HESTA will be provided a first right of refusal to invest in existing and new Green Hydrogen Projects. The parties may otherwise agree to add additional investors to the Green Hydrogen Projects
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 on the terms summarised above and to advance to definitive agreements.
