Sweetman Renewables is targeting the biomass and green hydrogen sectors with a $4 million (€2.48 million) pre-IPO capital raising ahead of its debut on the Australian Securities Exchange (ASX) later this year.
Unlike most proposed new entrants to the ASX, Sweetman has a ‘massive advantage’ in the form of a profitable 100-year-old sawmill business that has long-term off-take contracts in place with the Forestry Corporation of New South Wales. Sweetman is looking to leverage this timber business into becoming a major renewable energy player.
Timber operations generate wood waste that is often sent to landfill, due to its unsuitability for any other uses, said Sweetman, making up around 13% of materials that become landfill waste. However, this wood can be used as biomass to generate electricity.
With this new resource, Sweetman is looking to leverage on its sustainable biomass to produce green hydrogen, which has been forecast by Goldman Sachs to become a US $10 trillion (€8.4 trillion) market by 2050.
Sweetman recently signed a 20-year US $90 million (€75.7 million) supply contract with a Japanese conglomerate. It is also in advanced negotiations with Verdant Earth Technologies to be the primary supplier to Verdant’s $550 million (€340 million) biomass power station in the Hunter Valley, New South Wales.
The pre-IPO raise will be led by Barclay Pearce Capital, which completed successful pre-IPO capital raises for Verdant Earth Technologies and Infinite Blue Energy.