Verdant Technologies Australia is an Australian-based green energy company that owns, develops, and operates renewable energy generation assets. 

UPDATE: Verdant (VTA) is now closed but we will be taking over-subscriptions until 5pm today.

Barclay Pearce Capital, acting as Lead Manager to Verdant Technologies Australia (formerly Hunter Energy) on its $2M Pre-IPO raise via a private placement of ordinary shares with attaching options. 

About Verdant

Verdant Technologies Australia is an Australian-based green energy company that owns, develops, and operates renewable energy generation assets. 

The company is undergoing a strategic rebranding as part of its broader shift to building a technology agnostic, diversified renewable energy company. Verdant’s flagship asset, the 151MW Redbank Power Station, is a power station with a replacement value in excess of $450m. The plant is located in the Hunter Valley south of Singleton and is currently under care and maintenance. Verdant is  repurposing Redbank to operate solely on waste biomass with net-zero CO² emissions with a restart to operations scheduled for Q4 2021. 

Verdant has continued to proactively seek out and develop green assets and significant renewable technological advances with an immediate focus on generation and green hydrogen development. After evaluating several opportunities, Verdant has proposed to acquire 100% of the Monarch Hydrogen Asset, a project to build Australia’s first scalable Hydrogen production plant with the ability to initially deliver 6.5 t/day of compressed hydrogen by 2022.

Offer Details

• $2,000,000 via the issue of 12,500,000 ordinary shares at $0.16 each. 

• 1:5 attaching options to each fully paid ordinary share with an exercise price of $0.30, expiring 36 months post-IPO.

• Pre-Money Valuation of $37,904,585.

• The Company reserves the right to accept over-subscriptions at its discretion.

Investment Highlights

Redbank Power Station (100% Biomass)
Verdant owns 100% of the 151MW Redbank power station which is currently Australia’s only generator with circulating fluidised bed technology (CFBT) recognised for its emissions control capability and its proven ability to operate on 100% biomass. Upon restart, Redbank will be one of the largest green baseload renewable energy providers in NSW and the ONLY existing facility capable of providing continuous green 24/7 power with Net Zero CO² emissions, adding to grid stability. Verdant has lodged a DA modification to add the ability to operate on 100% biomass with an estimated 2-4 month approval time. The current estimated cost to restart Redbank is $60m (including contingencies) and is planned to take six to eight months. Debt facility discussions are underway with several parties interested in funding the project. Waste Biomass feedstock will be obtained from a variety of sources, with 100% of eligible fuel already sourced and EPA approval to add the ability to utilise construction and demolition timber underway.

Monarch Hydrogen Project
Verdant is currently finalising an agreement to acquire the Monarch Hydrogen Asset as an initial step into the development of Green Hydrogen based energy solutions. Monarch Hydrogen is well advanced in the planning of a scalable hydrogen production plant at the Port of Newcastle with an initial aim to deliver 6.5 tonnes/day of Compressed Hydrogen by 2022, which is then scalable to 65 tonnes/day. Verdant will be completing a bankable feasibility study during the 2021 CY with a view to reaching production by late 2022. The plant will be located at the Port of Newcastle site, NSW and adjacent to rail/port and domestic gas pipelines. Energy will be sourced via a Blue/Green Purchase Power Agreement (PPA) and Hydrogen Offtake Agreements are currently under negotiation and expected to be secured during the first half of CY21.

Verdant is also considering locating a Hydrogen plant behind the meter at Redbank, thereby reducing energy input costs significantly. Verdant will acquire Monarch Hydrogen for script with up to 30m performance shares with vesting milestones, including suitable offtake agreements, and the completion of a commercially acceptable feasibility study. The project will have a construction budget of ~$43m with an estimated revenue of ~$20m, and EBITDA of $4-5m, based on the initial 6.5 tonnes/day output.

The funds will be used to complete a PFS for the Monarch Hydrogen asset, payment of loan instalments, fund network reconnection costs and for working capital and IPO related expenses.

This private placement is exclusive to s708 investors only.

Verdant has recently been featured by Stockhead