High Peak Royalties Ltd (ASX:HPR) has enhanced its green hydrogen project royalty agreement with ScimTek Hydrogen Pty Ltd with the removal of a key condition from the original agreement.
As per the previous MoU with Scimtek, HPR receives a 1% royalty on the sales of ScimTek’s products capped at $30 million for a fixed 10-year period.
HPR has successfully negotiated the removal of the ‘10-year fixed term’, which was a key condition from the original agreement signed.
The revised agreement has the effect of making the royalty right a perpetual 1% royalty.
Novel catalysts to reduce costs
HPR’s royalty agreement provides for a 1% royalty on both hydrogen sales and the novel catalyst for producing hydrogen via steam bio-methane reforming (SBMR).
ScimTek plans to investigate novel catalysts to reduce the cost of generating hydrogen and to rapidly commercialise any superior catalyst, at the same time as progressing hydrogen generation from waste gases using existing technology and seeking technical and cost improvements.
Fortnightly updates
HPR has finalised the agreement with ScimTek and has completed the payment in finalisation of the acquisition of royalty rights under the agreement.
In addition, ScimTek is now providing HPR with fortnightly updates on project progress.
The latest update from ScimTek included discussions with universities, councils, and potential commercial partners.
Furthermore, potential novel catalysts will be identified and tested with meetings with relevant government bodies already being scheduled.
- Ephrems Joseph