Sparc Ultra-Green Hydrogen

November 2021 ASX: SPN

Transformational Technology for Global Industries

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Sparc Ultra-Green Hydrogen

Next Generation technology to transform global hydrogen production

No Wind or Solar Farms Required

Globally Disruptive, Ultra-Green Hydrogen technology developed by University of Adelaide and Flinders University.
Ultra-Green Hydrogen produced directly from sunlight and water
Photocatalytic water splitting coupled with solar radiation used to produce hydrogen
Predicted very low CAPEX and OPEX
No electrolysis required
Not producing electricity to split water to produce Hydrogen
Overcomes key obstacle of green hydrogen production
Allows for massive energy efficiencies and ultra cost competitive advantage
Potential low-cost alternative to current industry practice of steam methane reforming with vastly lower carbon footprint
Research ongoing to incorporate graphene into the photocatalyst

Hydrogen Opportunity

Demand for hydrogen expected to grow 5-fold by 20501 as the world transitions to low and zero carbon emissions
Clean hydrogen has the potential to aid the decarbonization of c.45% of global anthropogenic emissions
The hydrogen opportunity lies in decarbonising Australia by replacing fossil fuels with hydrogen alternatives using existing infrastructure
Investment required to reach government production targets and spending projections across the value chain adds up to more than US\$300 billion through 20302
Demand for hydrogen from existing 'hard to de-carbonize' sectors including industrial, heating, transportation and power generation industries is expected to be at the forefront of reducing these emissions
Sparc's proprietary, low-cost Ultra-Green Hydrogen will be ideally suited to capture this rapid hydrogen demand growth

Exisiting Feedstock uses

Sources of Demand

Global Estimated Hydrogen Demand Global Hydrogen Demand

What is Conventional Green Hydrogen Energy?

Conventional green hydrogen technologies use electricity derived from solar and/or wind farms to produce hydrogen using an electrolyser

How does Sparc Ultra-Green Hydrogen work?

Sparc Ultra-Green Hydrogen does not use solar and/or wind farms, nor electrolysis as with conventional green hydrogen – only photocatalyst and solar radiation.

Renewable Hydrogen Economy

Sparc Ultra-Green Hydrogen Benefits

Lower CAPEXwind and/or solar farms not required

Lower OPEX – no electricity required to produce Hydrogen

Can be adopted on a smaller scale without wind and/or solar farms – smaller land footprint

Can be utilised directly on location e.g. mine sites, industrial locations and domestically

Sparc Hydrogen Project – Key Terms

UoA grants Sparc Hydrogen JV an exclusive commercial licence to the relevant UoA IP and Improvements

The material terms of the proposed Joint Venture are summarised below:

The equity structure of the Joint Venture will see University of Adelaide retain 28% of the Joint Venture, with Sparc holding 72%.
Sparc to issue the University of Adelaide 3,000,000 SPN New Shares, plus expenditure of \$4,750,000 over 4.5 years towards the Joint Venture.
Total cash contributions of \$4,750,000 to be made throughout the period of the project (4.5 years), comprising:
Stage 1 commitment over the first 2.5 years of \$2,000,000 ("Stage 1"); and
Stage 2 over 2.0 years of \$2,500,000 ("Stage 2").
Additionally, \$250,000 to be paid to University of Adelaide for operations set-up and a scholarship.

University of Adelaide

DR STEPHEN RODDA

Executive Director, , Innovation & Commercial University of Adelaide

"This joint venture is a perfect example of the University of Adelaide's internationally regarded research being brought to a commercial outcome, which we hope will have benefits for industry and the community. We are proud to be the leading university involved in this venture, applying our research and innovation in responding to one of the great challenges of our times: the development of green energy solutions for our planet."