Bell Bay: Line Hydrogen reveals plans for fleet of Tassie eco trucks

A Bell Bay green hydrogen company which hopes to start production next year and establish a Tasmanian fleet of hydrogen-powered heavy vehicles, is selling shares online to raise $2.5m.

A green hydrogen company hoping to start production from a new northern Tasmanian facility in early 2023 is seeking to raise $2.5m from the public by selling shares for $6 each on a crowd-funding platform.

Line Hydrogen, founded in 2019, would spend the $2.5m primarily on purchasing “green hydrogen production equipment, heavy vehicles and hydrogen refuellers” for its planned $12m George Town Project, to be co-located with a 5MW solar farm at Bell Bay which has already received development approval.

Under a non-binding ‘terms sheet’ hammered out between Line Hydrogen and green investment company Climate Capital, the latter party will fund and build the $8m solar farm, which would then sell the electricity required to run Line’s electrolysers “behind-the-meter” – i.e. it will not be connected to the wider grid.

Line and Climate Capital intend on agreeing to a binding solar power purchase agreement and site lease agreement by June 30, Line’s crowdsourced funding offer document stated.

Line has already received $5m funding via a Labor federal election commitment.

After the current round of fundraising, which has already reaped more than $982,000 via crowd-funding equity platform Birchal, with investors able to purchase shares for $6 each with a minimum spend of $250, Line will conduct a final round of raising consisting of equity and debt to get project over the line.

Line’s business model revolves around replacing diesel-fuelled heavy transport vehicles, as well as mining plant and generators, with hydrogen-powered vehicles and plant.

The company “is establishing a fleet of heavy haulage hydrogen powered trucks and buses that will be fuelled by our own hydrogen production,” the funding offer document states.

“The fleet is planned to be operated through a combination of direct leasing to transport companies, or operated directly under heavy haulage and transport contracts.

“Once operational at our George Town Project in Tasmania, it is expected that around 30 heavy haulage vehicles per day will be operating on the initial production capacity” from its 3.5MW electrolyser, which would provide 1.49 tonnes of hydrogen per day.

The company hopes to eventually upgrade to a 10MW electrolyser at its George Town Project, while a second facility is also planned for southeast Queensland.

Executive chairman Brendan James told the Mercury the nearly $1m already raised was from mostly “mum and dad” investors who had registered their interest during an EOI period.

Mr James said he believed Line’s business model offered a new way forward for hydrogen players.

“We are in control of both our supply and demand – I think that’s where the industry’s tied itself in knots before, trying to facilitate both those at the same time.”