NanoFilm Technologies has signed a definitive agreement with Temasek, a Singaporean investment group, to invest in the Sydrogen Energy joint venture.
It comes after the parties announced in April that they had signed a non-binding term sheet.
Sydrogen will utilise NanoFilm’s key technology to develop new components and solutions to overcome existing limits in enabling the use of hydrogen as an energy source, according to the company’s exchange filing.
Its goal is for hydrogen energy to become more widely adopted in the commercial sector.
The total initial investment in Sydrogen under the JV agreement is up to around $140 million, with NanoFilm contributing up to $21 million in cash and transferring the group’s hydrogen energy business and related intellectual property in exchange for a 65 percent shareholding, and Temasek contributing the rest in cash.
The funds will be utilized for research and development as well as the expansion of NanoFilm’s production capacity, according to the company.
According to NanoFilm, Sydrogen will base its key research and development efforts in Singapore. Sydrogen also sees China as a promising market, citing government plans that encourage the creation of a hydrogen economy, beginning with fuel cell electric vehicles.
Sydrogen has formed a technical partnership with Nanyang Technological University to license the latter’s fuel cell-related intellectual property, according to NanoFilm.
Before the announcement, NanoFilm’s stock ended at $6.22, down four cents or 0.6 percent.
NanoFilm executive chairman Shi Xu said: “We are excited to partner Temasek in this strategic joint venture to tackle the global climate change crisis through technological solutions that enable the hydrogen economy.”
He added: “The combination of NanoFilm’s technologies and Temasek’s global network will help Sydrogen bring its advanced solutions to the hydrogen economy quickly and effectively.”