Net Zero Infrastructure terminates plan to buy Australia's LINE Hydrogen

UK-headquartered Net Zero Infrastructure, an entity formed to buy clean technology companies, has terminated its plan to purchase LINE Hydrogen that has vertically integrated renewable hydrogen projects in Australia, Net Zero said Jan. 4.

LINE Hydrogen has a 1.69 mt/d renewable hydrogen project near Bell Bay, Tasmania, targeting fuel supply for transport including heavy haulage fleets and mobile power providers.

"We are disappointed that we have not been able to complete the transaction with LINE Hydrogen, but the board have determined that termination of these discussions is in the best interest of our shareholders," Net Zero Chairman Mike Elwood said in a filing to the London Stock Exchange. "Unfortunately, the transaction had funding requirements which were not possible in the current market environment."

The non-binding letter of intent to acquire the entire share capital of LINE Hydrogen signed June 1, 2023, has been terminated by mutual agreement of the parties with immediate effect, Net Zero said.

LINE Hydrogen did not immediately respond to an S&P Global Commodity Insights' request for comment on the termination of the share transaction.

On its website, the company have given mid-2023 as the commissioning time of the Bell Bay project and has said it will grow to 14.9 mt/d over nine years, without any further update.

It targeted full production by the start of the fourth quarter of 2023. LINE Hydrogen is also establishing a fleet of heavy-haulage hydrogen powered trucks to be fueled by its own hydrogen production, according to its website.

However, Australian government's Commonwealth Scientific and Industrial Research Organisation website, in a December update, said the project was "under development" with its submission of an environmental assessment report in early June 2023 accepted.

Platts, part of S&P Global, assessed Tasmania hydrogen produced via alkaline electrolysis (including capex) at $3.79/kg on Jan. 4, up 7% month on month.

Platts assessed Japan hydrogen produced via alkaline electrolysis (including capex) at $4.52/kg on Jan. 4, down 24% from a month earlier.