ReNu Energy (ASX:RNE) announces power purchase agreement and collaborations

ReNu Energy Limited (ASX:RNE) has announced the execution of a Power Purchase Agreement (PPA) with Climate Capital Pty Ltd to purchase all the output from a proposed 9.95MW solar farm adjacent to the proposed Wesley Vale hydrogen production facility. The solar farm aims to supply power to the Wesley Vale site and export power for application to the proposed hydrogen production, storage, and refueling station at Brighton. Additionally, collaborations with the Tasmanian Transport Association, Ofload, and 7R Logistics further support Countrywide Hydrogen's goal of introducing a zero-emissions logistics solution across Tasmania and potentially nationally.

Executive Commentary on ReNu Energy's recent developments

RNE Chairman Boyd White expressed the company's satisfaction in entering the PPA with Climate Capital, emphasizing the importance of purchasing behind-the-meter power at a competitive price and connecting to the Tasmanian electricity grid to advance the hydrogen ecosystem in Tasmania. The company's wholly owned subsidiary, Countrywide Hydrogen, is focused on developing the Hydrogen HyWay#1, which aims to establish Australia's first end-to-end hydrogen transport ecosystem and contribute to decarbonizing the heavy transport industry. The collaborations with the Tasmanian Transport Association, Ofload, and 7R Logistics are significant steps in supporting the company's green hydrogen projects and its ambition to provide alternative and zero-emissions fuel at a competitive price for Tasmanian road transport operators.

Summary of ReNu Energy's announcement and outlook

ReNu Energy's entry into the Power Purchase Agreement with Climate Capital for the solar farm marks a significant advancement in its efforts to develop a hydrogen ecosystem in Tasmania. The collaborations with key industry players such as the Tasmanian Transport Association, Ofload, and 7R Logistics further strengthen the company's position in introducing a zero-emissions logistics solution across Tasmania and potentially nationwide. The Hydrogen HyWay#1 project's planned facilities in Wesley Vale and Brighton are designed to contribute to decarbonizing the heavy transport industry, with the solar farm's power supply offering a long-term green and power price hedge. The 15-year term of the agreement, with a 10-year extension option, provides a stable foundation for the company's future endeavors. ReNu Energy's vision to be a leader in the renewable and clean energy sector in Australia, striving for a sustainable future, aligns with its strategic investments in renewable and clean energy technologies and the development of hydrogen projects to drive the transition to a low carbon future.