The news comes after the Western Australian Government yesterday signed a memorandum of understanding with authorities across Europe and Canada to promote the use of hydrogen fuel cell-powered public transport.
Perth-based Eden today said it would issue 7.8 million shares at 35c each for a total of $2.73 million to UK and Australian institutions and investors.
The money raised will be used to expand and accelerate the marketing of Hythane in India and other countries and to fund an expanded drilling program for coal seam methane and natural gas in Wales.
Eden said it would also use the funds to provide additional capital to explore its geothermal and natural gas targets in Australia and meet its ongoing working capital requirements.
The company yesterday said it was continuing to make “good progress” in marketing Hythane in India.
“[Eden] is well-placed to be a major participant in what is seen as a huge and potentially rapid rollout of anticipated Hythane in various sectors of the Indian market,” it said.
The company said in the past two weeks it had progressed negotiations with a major Indian engineering group to establish a joint venture company there to market and roll out Hythane. The negotiations are expected to be completed in the next four to six weeks.
Eden said it had also furthered discussions with another major Indian bus manufacturer and with an Indian generator manufacturer to develop Hythane gensets for the “huge” Indian generator market. It said it hoped an agreement with the companies in one to three months.
The company said the Gas Authority of India, a government body, which owns and operates most of India’s gas pipelines, has also offered to partner with its wholly owned subsidiary, Hythane Company.
Together, they will work on the Indian Hythane bus demonstration projects for the Ashok Leyland engine, planned for May/June. Thereafter, they will begin an immediate rollout of Hythane in selected areas where both hydrogen and natural gas are available.
WA Govt inks hydrogen fuels MoU
Meanwhile, the WA Government has joined forces with representatives from London, Barcelona, Amsterdam, Berlin, Hamburg and British Colombia to form an international working group to promote hydrogen and fuel cell technology.
WA Planning and Infrastructure Minister Alannah MacTiernan said the MoU and formation of the working group was a vital step towards the commercialisation of hydrogen-powered public transport.
“The working group will aim to demonstrate the existence of potential global markets for hydrogen-powered bus technologies to suppliers of hydrogen buses and refuelling infrastructure,” MacTiernan said.
“We hope this will encourage these suppliers to commercialise hydrogen buses as soon as possible.”
The minister said the decision to join the international alliance was built on WA’s successful trial of three hydrogen fuel cell buses – the first such trial in the southern hemisphere.
“The State Government is committed to developing sustainable transport systems which have minimal impact on our environment,” she said.
“We have a responsibility to future generations to ensure public transport is as clean and green as possible, and we believe hydrogen will play an important role in the inevitable transition from fossil fuels.”
The working group plans to have hydrogen buses operating in public transport fleets from 2008.
