Key Highlights

  • A further A$1.3 million in equity is going into Sparc Hydrogen from Sparc Technologies, Fortescue and Adelaide University
  • Sparc Technologies will contribute about A$468,000 and its stake in the joint venture stays at 36%
  • SunHydrogen modules reached more than 10% solar-to-hydrogen efficiency in Phase 1 laboratory testing
  • Phase 3 on-sun trials of the modules at the Roseworthy pilot site are planned for early in the new year

Sparc Technologies Limited (ASX:SPN) has, together with Fortescue and Adelaide University, committed another A$1.3 million of pro-rata equity to Sparc Hydrogen, the three-way joint venture developing green hydrogen technology based on photocatalytic water splitting. Sparc Technologies' contribution is about A$468,000, and its holding in the venture will remain at 36% once the investment completes, which is expected one week after 20 October 2026. The money is directed at scaling up the technology, building partnerships and commercial delivery after early operation of the SHARP pilot facility at Roseworthy, South Australia.

Use of the New Funding

Sparc said the money will back Sparc Hydrogen's collaboration with US-based SunHydrogen Inc., including planned testing of SunHydrogen's water-splitting modules at the SHARP pilot facility. It will also support a wider materials sourcing strategy that extends beyond photocatalysts to photoelectrochemical cells (PEC) and integrated PV-electrolysis systems (IPV-E), all of which split water directly with sunlight. Sparc says PEC and IPV-E units give higher hydrogen output and better production economics, and that its reactor platform, which concentrates sunlight, can generally accommodate them. A newly hired Manager of Advanced Materials will source and evaluate these materials for the venture.

SunHydrogen Testing Phases

The collaboration between Sparc Hydrogen and SunHydrogen was announced on 11 August 2026. The new funding follows Sparc Hydrogen's move from early operation of the SHARP pilot facility to a second phase of laboratory testing with SunHydrogen. Phase 1 laboratory testing is now complete. SunHydrogen's modules achieved more than 10% solar-to-hydrogen (STH) efficiency in the laboratory, and each module produced more hydrogen when solar concentration was increased inside Sparc Hydrogen's reactor platform.

Phase 2 concentrates on optimising how the two technologies integrate, ahead of Phase 3, which will put the modules on-sun at the SHARP pilot facility in the early part of the new year. Sparc said higher output per module has the potential to improve system economics and, ultimately, cut the levelised cost of hydrogen (LCOH) once the two technologies work together.

How the Technology Works

Photocatalytic water splitting is described by Sparc as an emerging method of making green hydrogen. The process needs only sunlight, water and a photocatalyst, with no electrolyser. Sparc Hydrogen's patented reactor concentrates sunlight, which Sparc says improves the process economics, and forms a modular, scalable system. Sparc states that the lower infrastructure requirements and electricity use give the method potential cost and flexibility advantages over electrolysis. Managing Director Nick O'Loughlin said Sparc Hydrogen has moved from laboratory research to operating a pilot facility over four and a half years, and that this platform allowed it to work with SunHydrogen.

Shareholding and Agreements

Sparc Technologies' investment is being made under an Offer Notice and Subscription Deed executed by each shareholder. After completion, its shareholding in Sparc Hydrogen will remain 36%. A shareholders agreement already exists between Sparc Technologies, Fortescue, which holds its interest through MIH2 Pty Ltd, and Adelaide University, which holds through Innovation and Commercial Partners Pty Ltd. The agreement includes provisions that are customary for a private company, and the investment leaves it unchanged. O'Loughlin said the three shareholders are once more putting money in together for the next stage of technology development.

Sparc Technologies' Wider Business

Sparc Technologies describes itself as an Australian technology business whose solutions aim to improve environmental and sustainability results for industries worldwide. It works in two areas, graphene-enhanced materials and green hydrogen, and carries out its research and development in-house while maintaining relationships with universities in Australia and overseas. It has commercialised ecosparc, a graphene additive for epoxy-based protective coatings, and has commissioned a manufacturing facility for the product. The company is in contact with coatings companies around the world, and with large owners of assets, about testing, trials and commercial partnerships. Its shares are quoted on the ASX, in Frankfurt and on the OTCQB market in the United States.

Wrapping Up

Fortescue, Adelaide University and Sparc Technologies have committed a further A$1.3 million to Sparc Hydrogen, with Sparc Technologies contributing about A$468,000 and keeping 36%. Completion is expected one week after 20 October 2026. The money supports SunHydrogen module testing, including on-sun trials at SHARP early in the new year, and an expanded materials sourcing strategy covering PEC and IPV-E systems.