|
80 Mile PLC on Tuesday said it will take sole ownership of Hydrogen Valley Ltd, alongside signing three feedstock deals. The metal and gas explorer’s shares rose 7.4% to 0.73 pence on Tuesday afternoon in London, having more than doubled in the last 12 months. 80 Mile has agreed revised acquisition terms with Hydrogen Valley, a London-registered company which reported £1.9 million in pretax profit in financial 2025. Hydrogen Valley operates at the Ferrandina biofuel site in Italy through its wholly-owned subsidiary Greenswitch Srl Hydrogen Valley. Back in December, 80 Mile announced a fundraise to buy up to 49% of Hydrogen Valley for £2.0 million in cash and new shares equal to 29% of 80 Mile’s capital, with the option to increase this to 100%, for an aggregate £6.05 million in cash and shares. 80 Mile on Tuesday said it will take full ownership of Hydrogen Valley under revised terms. As part of the deal, 80 Mile is issuing Hydrogen Valley with an additional 10 million shares. It has paid €100,000 in cash to Greendome Holdings Inc, and will issue 220.0m new shares to Greendome. Further payments are possible, unless 80 Mile’s shares triple in value by June 30. The potential deferrals include a €750,000 cash payment due by June 30, 2027, and a possible further €1.5 million, to be paid 50% in and 50% shares by March 31, 2028. Also on Tuesday, 80 Mile noted that Greenswitch Srl, its newly acquired subsidiary, has signed a memorandum of understanding with an unnamed Fortune 500 firm, which 80 Mile called ‘one of the world’s largest integrated energy companies.’ Starting on November, this company will supply the Ferrandina plant with an annual 80,000 tonnes of renewable feedstock such as palm oil methyl ester and repurposed used cooking oil. Separately, Greenswitch has agreed a tolling framework with Italian petroleum company Ludoil Energia Srl, which will supply 80,000 tonnes of biodiesel feedstock year in the short term, reducing to 40,000 tonnes annually in the longer term. The Ludoil agreement will cover half of Ferrandina’s 150,000-tonne yearly capacity, and is expected to generate about €8 million in annual net profit for Hydrogen Valley, 80 Mile said. It expects the remaining 50% of capacity to generate €16 million, bringing net profit to €24 million a year, based on full production. Meanwhile, Hydrogen Valley has a memorandum with Rome-based JEnergy Spa. This is a short-term biodiesel and bioliquid supply framework, starting in January, for an annual rate of 10,000 tonnes. Longer-term discussions for the supply of sustainable aviation fuel and hydrotreated vegetable oil from 2027 are in progress. ‘The calibre of counterparties now engaged with Ferrandina underlines its strategic importance within Europe’s renewable fuels supply chain,’ said Eric Sondergaard, managing director of 80 Mile. By partnering with recognised leaders across the Italian and global energy landscape, we are establishing Ferrandina as a key processing hub for biodiesel today and laying the foundation for long-term growth in SAF and HVO.‘ Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
