Investors have committed about $2.85 million to ADX’s intentions to further its Austrian green hydrogen project, geothermal pilot, and conventional oil drilling.
Sophisticated, institutional, and professional investors purchased 284.7 million shares priced at 1 cent each, a 9 percent discount to the stock’s previous closing price of 1.1 cents.
This comprised the issuance of one 1.5c placement option for every two shares subscribed on or before 30 June 2022.
ADX Energy intends to use the revenues to advance ongoing feasibility studies for the Vienna Basin green hydrogen production and storage project, as well as the geothermal pilot project, which are being developed in conjunction with Siemens Energy and RED Drilling & Services.
Additionally, funds will be required to complete and tie in the future Anshof-1 oil exploration well, as well as license costs for the extension of the company’s Upper Austria exploration licences.
He also stated that it was in shareholders’ best interests for the company to immediately complete and tie in the Anshof well for production, expand its exploration and geothermal footprint in Upper Austria, and maintain momentum toward commercialization of the Vienna Basin green hydrogen production and storage project.
Multiple depleted gas reserves in the Vienna Basin are at the optimal temperature and pressure for hydrogen storage and are conveniently placed adjacent to Austria’s largest wind farms.
Due to the fact that wind and solar energy flood the grid throughout the summer, this gives a chance to use excess renewable energy to power hydrogen electrolysers.
The hydrogen produced can then be stored in reservoirs for sale throughout the winter.
This effectively generates a hydrogen battery with reservoirs that can store roughly 500 times the energy of the largest Tesla energy storage Mega Pack (around 200MWh) at a significantly lower cost.
ADX is also exploring the Mollasse Basin’s geothermal potential through a pilot project with Siemens Energy. Siemens Energy’s technology has the ability to generate six times the power per well as conventional geothermal systems.
Separately, the business has begun site preparations for the Anshof-1 oil exploration well, which has a potential oil equivalent of 6.6 million barrels.
Drilling is planned to begin in mid-December and will last approximately 17 days.
If the well is successful, it will be quickly commercialized due to its proximity to an existing oil and gas pipeline bundle.
