It’s fair to say that the world is on the threshold of global change when it comes to energy production. And Australian company LINE Hydrogen is at the front line, working hard to produce cost effective, clean, green renewable hydrogen with multiple end uses.
Put simply, LINE Hydrogen is simplifying hydrogen and its production processes, taking the next step towards realising an economically viable alternative fuel source.
It was established in 2019 with a vision to replace the unsustainable use of diesel in transport and power generation with clean ‘green’ hydrogen – meaning hydrogen that’s produced in facilities powered by renewable energy.
Led by founder and executive chairman Brendan James, the team has extensive experience working on large primary industry projects in regional and remote locations, and are firm believers that green hydrogen will drive the future of transport in Australia.
“This is a product that’s needed, and is achievable for Australia now,” James says. He is a global leader and expert in hydrometallurgy, with over 20 years of specialised expertise
in complex metallurgical engineering design, project development and operations.
His operational background and experience in investment banking has seen him invest his own funds to raise LINE Hydrogen to ensure the vision becomes a reality.
While Australia is just getting started in the area of green hydrogen production, others have successfully bought similar projects to markets in other parts of the world. California now has 53 hydrogen refuelling stations available, and a further 121 in development, with more than 13,500 hydrogen fuel cell vehicles on the road.
Meanwhile, Australia has a competitive advantage in renewable energy sources, in particular solar, wind, hydro, accounting for 24 percent of electricity generation in 2021, which is only increasing each year.
“The process really forced us to step up in terms of how we do our own self promotion. You always think about the monetary side, but raising shareholders is another bonus that you don’t really consider when thinking about the benefits that come with raising funds.”
BRENDON JAMES – LINE HYDROGEN FOUNDER
A specialist team driven by change
The ability to bring a new green solution to market drives him and his team. “We could see that in the area of heavy transport, heavy industry, that the electrification route that has been hitting the market in some pockets just wasn’t going to work. So we went looking for a green solution and this idea of hydrogen stemmed from our background in the mining industry,” James says.
He’s built a specialised team that have been involved in complex engineering projects for the last two decades, giving them the experience to be one of the first commercial scale green hydrogen producers in Australia. “We’re not just talking about it, we’re doing it,” he says.
“Applications of the technology will power heavy haulage and transport fleets, heavy mining equipment and smaller vehicles, such as cars and motorbikes.”
LINE Hydrogen has a bold vision to completely disrupt the diesel industry, which consumed more than 80 million litres of diesel per day in 2021, according to the Australian Petroleum Statistics 2021.
The company is also heavily involved in advancing hydrogen technology and improving efficiencies. It also values community engagement as an important part of the development of the industry as part of the roll out of this new energy source.
Among Australia's first to deliver at scale
LINE Hydrogen marks one of the first commercial scale green hydrogen producers in Australia, delivering large-scale green hydrogen production capacity in Tasmania and South East Queensland.
The company has designed and is building a hydrogen production plant in Tasmania with the aim of producing green hydrogen using renewable power sources, such as solar and hydro for commercial customers. It is expected to be in production by the end of 2023.
Raising with Birchal
But changing the world takes time, effort and of course, money. Which is why LINE Hydrogen opted to work with Birchal to raise the funds it required to ensure the vision is realised to its fullest potential.
While experienced in the world of business, the LINE Hydrogen team weren’t overly familiar with the crowdfunding approach, the Birchal team made them feel comfortable with what was a relatively low risk process, James says.
“We set out to raise funds to help with the development phase while also bringing in a shareholder base to support the company, which has been a significant part of its success so far,” James says.
“The process really forced us to step up in terms of how we do our own self promotion. I think you always think about the monetary side when you’re in business, but raising shareholders is another bonus that you don’t really consider when thinking about the benefits that come with raising funds,” he says.
There was massive interest in this radical approach to energy production, and ultimately, the raise with Birchal was a massive success, raising $1.39 million between 638 investors when closing in June 2022.
From crowdfunding towards listing
The equity crowdfunding experience with Birchal buoyed LINE Hydrogen, which has since moved toward preparing to list on the London Stock Exchange. This transition phase from a private company to a public company is an important milestone for investors to fully realise their gains from their investment, and allows new investors to participate in the offering.
Of course, nothing this substantial can always run smoothly, and James admits that preparing for the listing process has taken some time because regulators need to be bought up to speed with hydrogen technology, he says.
“We’ve had to slowly walk them through what would otherwise be a fairly quick process to help them understand what we’re actually working to achieve,” James says. That’s the price you pay when you’re first to market, and only to be expected, he says.
LINE Hydrogen advice & insights
Hiring experts is money well spent
“A lot of people say you have to do all your own marketing and be available to answer all the questions that come in from investors, but any help you can get will pay off in the long run,” James says. The LINE Hydrogen team hired a video production company to handle the pitch video, which he says wasn’t particularly expensive, but crucial ahead of a raise. The result was much more professional, and helped get investors over the line, James says.
Be prepared for retail investor questions
“It can be challenging from the perspective that you can’t always answer questions to the satisfaction of potential investors,” he says. These queries came from genuinely interested investors trying to better understand new energies and where the opportunities lie to avoid greenwashing, but some of their questions had to go unanswered, he says.
Plan for PR to support your raise
Decent media attention at the time of the raise is also crucial. “I would also recommend that founders get out there in the media as much as you can and tell your story. Panel discussions and conferences are also a great way to make sure you’re seen during the raise process when you really need to be raising your profile,” he says.
