H2 View understands the deal would see Metgasco undertake a A$750,000 ($526,000) equity investment into Patriot with an option to acquire 100% of the company via an all-scrip acquisition, valued at A$5.9m ($4.14m).
Forming part of the petroleum firm’s diversification strategy, the acquisition would see Metgasco offer hydrogen as a Net Zero energy option, while also offsetting some of its own emissions associated with its natural gas production assets.
Patriot Hydrogen announced in February (2022) it would supply its modular hydrogen production solution to form part of Kimberley Clean Energy’s fossil fuel substitution strategy.
It is expected Patriot will deliver up to 75 production units to Kimberley Clean Energy to support remote power needs in Norther Australia, with its maiden unit due to be commissioned on site in the fourth quarter of 2022.
Ken Aitken, Managing Director of Metgasco, said, “This deal marks an important step for Metgasco as it commences its journey to becoming a leading low-emissions, multi-fuel producer.
“With completion of the recent Cooper Basin sub-surface program and gas production at Vali due to start in the fourth quarter of this year, the acquisition of Patriot should enable us to offset these emissions while also delivering a compelling standalone commercial opportunity.”
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