SPARC TECHNOLOGIES LTD (SPN) - Revolutionizing Green Hydrogen: Managing Director Nick O'Loughlin on Photocatalytic Water Splitting Innovations, Strategic Expansion in Morocco, and Graphene-Based ecosparc® Trials

Unlock the future of green hydrogen and advanced materials with Nick O'Loughlin, Managing Director of Sparc Technologies, as he returns to ASX Briefs. We're diving deep into the company's groundbreaking foray into photocatalytic water splitting—a revolutionary technology poised to upend traditional electrolysis and redefine cost-efficiency in the green hydrogen market. Supported by heavyweights like Fortescue and the University of Adelaide, Sparc is set to pioneer a new path in sustainable energy. Nick offers a strategic glimpse into why Morocco was the strategic choice for their first patent and how it aligns with the country's robust solar and fertilizer industries.

But that's not all—Nick also unveils the significance of the ecosparc® trial with BHP Mitsubishi Alliance at the Goonyella Riverside Mine. This venture tests graphene-based coatings in harsh conditions, showcasing Sparc's dual focus on innovation and practical application. Get ready to hear how these advances are not just spearheading change but also opening new frontiers in sustainable technology, setting Sparc Technologies at the forefront of innovation. Don't miss this episode brimming with insights and forward-thinking strategies from one of the industry's visionaries.

Transcript

Andrew Musgrave Host

Welcome to another episode of ASX Briefs, where we bring you insights from Australia's top-listed companies, and today we welcome back Nick O'Loughlin, the Managing Director of Sparc Technologies. Sparc Technologies is making significant strides in novel green hydrogen technology and graphene-enhanced materials, with recent milestones including the new trial agreement with BHP Mitsubishi Alliance, the granting of Sparc Hydrogen's first patent in Morocco and the progression to piloting of its photocatalytic water splitting technology. Nick, it's great to have you back on the show. Welcome back.
 
 Nick O'Loughlin Guest

Thanks Andrew
 
 Andrew Musgrave Host

Okay, now. Firstly, the decision to proceed with stage two of the Sparc Hydrogen joint venture was a major milestone achieved at the beginning of the year. What were the key factors in making this decision and what does it mean going forward? 

Nick O'Loughlin Guest

Yeah. So, Andrew, that was a big decision for the company and the joint venture which is Sparc Hydrogen. In an environment where green hydrogen has been a bit on the nose and there's been a number of project pullbacks and cancellations, et cetera, to have Fortescue and Sparc Technologies and the University of Adelaide decide to proceed with stage two and invest more money in the project, I think is really strong validation for what we're doing and I think that decision was made on the back of the fact that this technology that we're developing is unique. It's very different from the existing technology out there, which is electrolysis, and, importantly, we're not a technology that's driven by the cost of power. Our process is using a different method called photocatalysis, and it holds really strong potential to reduce costs and hopefully unlock the green hydrogen space which so much money is really looking for at the end of the day

Andrew Musgrave Host

And, as you say, the project is backed by Fortescue and the University of Adelaide. So, what are Fortescue's perspectives of the PWS technology and where could it be utilised? 

Nick O'Loughlin Guest

Yeah, look, I won't speak for Fortescue, but what I can say is that they're very supportive partners. They add a lot to the joint venture in terms of their technical expertise. We rely on them a lot for IP management as well and they’re really strong contributors into the project as you’d expect. I think in terms of, they pulled back little bit from their hydrogen ambitions last year, but their commitment towards decarbonising their steel-making value chain, which goes to their iron ore production, is really strong and they've committed to several green hydrogen projects which they are pursuing. So, I think with this technology they see potential to a potential different route to get to the same product which holds obviously a really strong potential for reducing costs as well and potentially fitting into their still making process I assume

Andrew Musgrave Host

Okay, and the company has recently secured its first patent in Morocco. So, what does this patent cover and why is Morocco an important jurisdiction for Sparc? 

Nick O'Loughlin Guest

Yeah, so it was a big milestone to get that first patent across the line. Morocco was chosen amongst 18 jurisdictions for our first patent because it is a really strong area for concentrated solar. It's obviously a very sunny country and they've been leaders in the development of concentrated solar deployment, so that's a key reason why we saw that opportunity. Also, they're massive in the fertilizer game and ammonia is a big focus there as well. So, we are filed in 17 other jurisdictions which we're hoping to progressively secure over the next 12 to 18 months, including US, Europe, all the jurisdictions you'd imagine for a technology of this nature. 

Andrew Musgrave Host

And Nick, Sparc recently announced a trial of ecosparc coatings with BHP Mitsubishi Alliance at the Goonyella Riverside Mine. So, what makes this trial particularly significant for Sparc? 

Nick O'Loughlin Guest

Yeah, so look, ecosparc is obviously separate to our work in Sparc Hydrogen and it goes to our graphene-based additive division and it's our flagship product in that division. So, securing a fourth field trial now with BHP Mitsubishi Alliance obviously is a very significant name. They're a significant user of protective coatings and the trial, importantly, will be used in conditions which we don't have access to with our other trials. So, it'll be used in their coal handling plant and it's a highly corrosive environment with a lot of moisture and we should see, hopefully, some benefits from the ecosparc enhanced coating in that environment. The other point about the field trials that we're undertaking, which includes BHP, Mitsubishi, but also Santos, Government of SA and 29 Metals, is that it really is demonstrating a strong pull through from the market, from the end users of these coatings, for better performing products which ecosparc can provide. 

Andrew Musgrave Host

And just touching on those, Santos, the SA Government and 29 Metals, how does the latest trial with BMA align with your broader commercialization strategy? 

Nick O'Loughlin Guest

Yeah, so, Andrew, it goes to the pull through that I've just mentioned. I think one thing for listeners to understand is that in the protective coding space, all the big customers or end users of these coatings have their own specifications. That's basically a list of coatings that can be used on their assets in certain environments, and part of the goal with these trials is to get ecosparc enhanced coating onto specifications, which really then drives the market to have to supply that form of product. In parallel, we're working with five of the eight largest protective coatings companies globally, which cover about 50% of the market. So, we're effectively approaching it from two angles the push into the market directly with the coatings companies and the pull through from the end users or the asset owners. 

Andrew Musgrave Host

And how are discussions progressing with potential commercial partners for ecosparc? 

Nick O'Loughlin Guest

It looked really well, andrew. We've added two of the major protective coating’s companies to the list of companies that we have been working with as of the back end of last year. So, we have really strong coverage across the customers for ecosparc and we're under testing and trials with a number of those. I think, putting that together with some of the field trials and the data that we're looking to get out of those in the next three to six months, I think we'll be really strongly positioned to commercialise the ecosparc additive, and we have some timelines there which give me some confidence to say that. So, I think 2025 will be a really significant year for getting ecosparc into the market as our flagship product. 

Andrew Musgrave Host

And just at a more macro level, given the rising interest in decarbonisation, what market trends are working in Sparc's favour? 

Nick O'Loughlin Guest

I think albeit the pullback from technology really more broadly, in a risk-averse environment where we've got higher interest rates than were the last couple of years, there still is a lot of money around for technology and for projects that can assist with the decarbonisation of heavy industry in particular, but more broadly across renewable energy as well. So, I think there is a lot of interest and at the moment it's about pairing that interest with the right companies, and we're certainly out there in the market looking for those type of investors who have a strong interest and a longer-term view around the upside for these particular technologies. 

Andrew Musgrave Host

Okay, and just to wrap things up, looking ahead, what are some of the key milestones you're hoping to achieve in the next 12 months? 

Nick O'Loughlin Guest

So, look, on the Sparc Hydrogen side we're about to start constructing the pilot plant that was the subject of the stage two investment. That construction program is about four months, so we're looking to have something built and commissioned by the middle of the year. So that will be a really significant milestone for the technology and de-risking that technology, garnering further strategic interest, et cetera. On the ecosparc side we are inspecting the first trials as of late this quarter, early next quarter, and we'll get some data out of those that will then feed back into the discussions we're having with the coating’s companies. We also have some grant opportunities in front of us which we submitted towards the back end of last year and hopeful that we will get some support for those, both on the ecosparc side and on Sparc Hydrogen. So, there's a number of things coming up for the business. 

Andrew Musgrave Host

All right, Nick, for your time today. It's been great to catch up again and we look forward to further updates in the upcoming months. 

Nick O'Loughlin Guest

Thanks a lot, Andrew. 

Andrew Musgrave Host

That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.