Pre-IPO Details: Infinite Blue Energy Limited is a renewable energy solutions provider to domestic and overseas clients and targets Zero emissions on its project. The company has plant design & LH2 shipping and importation Terminal related key IP for commercial projects and the production of green hydrogen. Arrowsmith Hydrogen project is its foundation project; in Stage 1, currently and expected to generate commercial amounts of Green Hydrogen for fuel cell vehicles in Australia. As per the company’s pre-IPO presentation, it has announced raising $6 million via a private placement of 8.57 million shares at $0.70 per share for the funding its Arrowsmith (Green Hydrogen) project. Barclay Pearce Capital (BPC) is the Lead Manager for the company’s pre-IPO offer. Its’s capital structure will have 126.2 million shares on issue pre-offer and 134.76 million shares on issue pos-offer. This private placement is exclusive to sophisticated, experienced or professional investors as per the classification provided under Section 708 of the Corporations Act 2001. The company is expected to be listed on ASX in FY21.
Capital Structure & Pre-IPO Offer Details (Source: Company Reports)
Funds Utilisation: The company estimates to use 50.3% (i.e., ~$3.01 million) of the pre-IPO subscription for the land acquisition, 23.3% for FEED work, 15.9% for its working capital needs and 5.4% to meet regulatory approvals.
Use of Funds Summary, (Source: Company Reports)
Project Highlights So Far: The company estimates the total cost of its Arrowsmith Hydrogen project to be ~$427 million. Its initial production cost is estimated at $3.78 per kilo at $48/MWh (assumed electricity price). The company has completed FEED studies work so far on the project. It is ready to lodge the project application for final submission to the Environmental Protection Authority and expected sanction in April 2021. It expects to produce 25 tonnes of hydrogen per day during Stage 1 and expand the production for exporting liquid hydrogen during the following stages.
Projected Financial Outcomes from the Project (Source: Company Reports)
Key Risks: The company faces the risk of producing the desired production volume till a defined timeframe, increase production and plant capacity over the years, achieve offtake contracts and cater to export markets, build its Green Data Centre timely to supply electricity.
Outlook: The company is prioritising the construction of its hydrogen plant presently and expects the first gas production in Q2FY2022. The company has entered an agreement worth $2.14 billion with Hydrogen West to sell its Stage 1 Green Hydrogen gas. It has contracts with two key hydrogen heavy vehicle suppliers as well. In Stage 2, the project is expected to increase Hydrogen production to 130 tpd, and to have offshore export lines for Asia, and an exports facility. In Stage 3, the company forecasts to export gas to the global markets and produce ~260 tpd. It plans to have a 50% project stake with an equal equity partner.
The company aims to build the cleanest Hydrogen plant in Australia with zero emissions. It is in negotiations with various partners for diverse uses of its product at Stage 2 and later.
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