Agronomics invests AUD 2.5m in HydGene Renewables

15th Jun 2023 12:14

(Sharecast News) - Cellular agriculture investor Agronomics announced a significant investment of AUD 2.5m in HydGene Renewables on Thursday.

The AIM-traded firm said the investment was part of HydGene's ongoing seed financing round, which was aiming to raise AUD 6m.

It said the move aligned with its broader objective of investing in opportunities that aimed to mitigate irreversible damage to the environment.

The investment was made using Agronomics' own cash reserves, and would grant the company ownership of 188,239 series seed preferred shares, amounting to a 12.5% stake in HydGene on a fully-diluted basis.

HydGene Renewables specialises in synthetic biology, and is engaged in the engineering of microorganisms for the purpose of hydrogen production.

By using proprietary biocatalysts created through fermentation, the company was enabling the conversion of waste biomass into gases like hydrogen and ammonia.

In addition to Agronomics' investment, other notable participants in HydGene's seed financing round included the Clean Energy Finance Corporation (CEFC), whose investment was managed by Virescent Ventures, as well as Understorey Ventures and NOAB Ventures.

"Efficiently and effectively harnessing hydrogen as a renewable source of energy is vital if we are to meet our net zero ambitions and reduce our reliance on fossil fuels," said executive director Jim Mellon.

"By upcycling waste biomasses into renewable gases, such as hydrogen and ammonia, HydGene's biocatalyst technology provides an entirely renewable carbon-negative solution which will support this global transition.

"HydGene's unique decentralised solution aims to accelerate the cost-effective adoption of low carbon technology across the fuel sector, and we are excited to see the substantial impact this could have on the global transition to hydrogen fuel."

At 1143 BST, shares in Agronomics were flat at 10.75p.

Reporting by Josh White for Sharecast.com.