A$5 million ARENA Grant Awarded to Curtin University for the Kotai Hydrogen Project
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TSX-V Announcement
9 April 2024
A$5 million ARENA Grant Awarded to Curtin
University for the Kotai Hydrogen Project
Toronto, Ontario, April 9, 2024 – Velox Energy Materials Inc. (TSXV: VLX) (“ Velox” or “the Company”)
is pleased to announce its project partner, the Hydrogen Storage Research Group at Curtin University
has executed a binding funding agreement with the Australian Renewable Energy Agency (“ARENA”) on
15 March 2024 for grant funding of A$5,000,000 under the Transformative Research Accelerating
Commercialisation (“TRAC”) Program for the Kotai Hydrogen Project (“Kotai” or “the Project”).
Highlights
• A$5 million awarded under a competitive process in the ARENA Transformative Research
Accelerating Commercialisation grants program that funds the commercialisation of renewable
hydrogen through innovative R&D in renewable hydrogen production, storage and distribution
technologies.
• The total project funding is approximately A$16.5 million, with cash and in- kind funding
contributions of A$7.15 million from Curtin University, and A$4.35 million from Velox.
• The Funding will be used to:
o Optimise the production of sodium borohydride, and the high-pressure release of hydrogen
(~1000 bar);
o Design and construction of a Pilot Plant.
• Velox Energy Materials has an option over 100% of the IP generated in the Kotai Hydrogen Project.
ARENA Funding and Project Endorsement
The Project is designed to advance a breakthrough hydrogen transport technology into commercial
reality. The competitive ARENA grant was awarded in a A$25 million funding round that has targeted
the commercialisation of renewable hydrogen through innovative R&D in renewable hydrogen
production, storage and distribution technologies.
The total project funding will be approximately A$16.5 million, with cash and in -kind funding
contributions of A$7.15 million from Curtin University, and A$4.35 million from Velox over the five-year
life of the P roject. Curtin’s contribution further validates the Project and shows its commitment to
derisking and commercialising the technology . The Project will be led by internationally recognised
hydrogen storage experts, Professor Craig Buckley and Associate Professor Mark Paskevicius.
The Funding will primarily be used to support the following activities:
• Electrochemical production of the sodium borohydride for operations at increasing scale .
Includes the regeneration of Sodium Borohydride after the hydrogen has been released, creating
a fully closed and recyclable circuit.
• Sodium borohydride materials processing and powder handling issues at bulk -scale handling
and regulatory adherence. The entire supply chain will also be assessed for chemical recycling
opportunities to minimise cost and reagent requirements.
• Design and construction of a Pilot Plant that will enable greater scale of commercialisation of
Sodium Borohydride and resultant hydrogen gas release production facility.
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TSX-V Announcement
9 April 2024
Kotai Hydrogen Project Overview
The Project involves the research development and deployment of a technology to transport hydrogen
as a powder. The powder is a salt called Sodium Borohydride that stores more hydrogen by weight and
volume than liquid hydrogen, ammonia or liquid organic hydrogen carriers ( LOHCs). Sodium
borohydride releases hydrogen when added to water. After hydrogen is released, a by-product powder
remains, called sodium borate, which is regenerated back to its hydrogen- rich form using renewable
energy.
Comparison of different methods of hydrogen export, costs are in USD from the Future of Hydrogen report prepared by the IEA.
Production of hydrogen through electrolysis uses 57kWh per kg H 2 at $0.0685 USD per kWh.
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TSX-V Announcement
9 April 2024
Velox’s President and CEO, Simon Coyle, commented:
“Low cost and safe transport and storage of hydrogen is the largest impediment to the growth of the
hydrogen sector. Velox, through subsidiary Kotai Energy and its partners, is developing a highly efficient
process for the transport and storage of hydrogen.
“The Kotai process being developed utilises an inert powder to store hydrogen, which can then be
released on demand wherever it is required. A key feature of the process is the ability to reverse engineer
the chemical reaction, allowing the spent waste spent material to be ‘reloaded’ with hydrogen for future
re-use.
“The ARENA funding will be dedicated into optimising the reverse process and growing this through to a
commercial product. The five-year funding is expected to rapidly convert lab studies into real world use
cases.
“We are thankful to ARENA for their significant support of our shared vision in hydrogen storage and
transport. We look forward to continuing to work closely with ARENA and Curtin and achieving our
environmental and economical goals.”
Australian Renewable Energy Agency (ARENA), CEO Darren Miller, commented:
“Funding early-stage R&D and pushing innovation was at the core of ARENA’s mission in supporting the
global transition to net zero emissions.
“We’re backing Australian technological innovation that helps build our clean industries and underpins
our ambitions of becoming a renewable energy superpower.
“ARENA has a strong track record in funding and supporting early -stage innovation. Through our
strategic priorities, we have highlighted the importance of renewable hydrogen and low emissions
metals growing to become a significant export industry.
“Innovation starts in the lab, and we have the best minds taking our decarbonisation efforts to the next
level – to the benefit of all Australians through jobs, lower emissions and cheaper energy.”
Hydrogen Storage Research Group’s Professor Craig Buckley, commented:
“Curtin University is focused on developing technologies and projects that will reduce greenhouse
emissions and progress industry towards Net Zero. We are extremely proud to be associated with this
unique, world leading technology. ”
Link to the ARENA announcement: https://arena.gov.au/news/funding-boost-for-hydrogen-and-
low-emissions-iron-steel-research/
Link to the Curtain University Announcement: Hydrogen project wins multi-million-dollar grant to help shift
to clean energy - News at Curtin | Curtin University, Perth, Australia
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TSX-V Announcement
9 April 2024
About the Hydrogen Storage Research Group, Curtin University
Hydrogen Storage Research Group team (HSRG) investigates new types of materials for energy storage.
The HSRG expertise in this area is used in conjunction with industry partners to provide real -world
solutions to research level problems in the energy storage space. Their expertise spans multiple
research fields including those of hydrogen rich materials, new battery technologies, and
thermochemical energy storage materials.
Professor Craig Buckley leads the HSRG and has over 30 years experience in hydrogen storage
research. Professor Buckley is the Australian executive committee member for the International Energy
Agency (IEA) Hydrogen Technology Collaboration Program (TCP), and an Australian expert on the IEA
Hydrogen TCP Task 40: Energy storage and conversion based on hydrogen. Craig is als o a Director of
the Australian Association of Hydrogen Energy (AAHE) and a Board member of the Hydrogen Society of
Australia.
Mark Paskevicius is an Associate Professor in Physics at Curtin University. He is the Theme Lead for
Hydrogen within the Curtin Institute for Energy Transition. He has undertaken experimental research
into hydrogen -rich materials and borohydrides for the last 18 years so has immense technical
knowledge in materials development and chemical processing.
About Sodium Borohydride (NaBH4)
The hydrogen-rich powder called sodium borohydride (NaBH4) that can store more hydrogen by weight
and volume than liquid hydrogen, ammonia or LOHCs. This is due to the fact that when NaBH4 is added
to water at its end destination it releases double the hydrogen it contains. Two molecules of hydrogen
from the NaBH 4, and two molecules of hydrogen from water are all released when NaBH 4 turns into
sodium borate (NaBO2). This results in an effective gravimetric and volumetric hydrogen density of 21.4
wt.% H2 and 137 kg H2 per m3 for each unit of shipped NaBH4 (assuming a powder packing fraction of 60
%). This means that the volumetric hydrogen density in NaBH4 is 1.28 times greater than ammonia and
1.93 times greater than liquid hydrogen.
Australian Renewables Energy Agency (ARENA) (https://arena.gov.au/)
The Australian Renewables Energy Agency was established by the Australian Government and supports
the global transition to net zero emissions by accelerating the pace of pre -commercial innovation, to
the benefit of Australian consumers, businesses and workers.
ARENA supports improvements in the competitiveness of renewable energy and enabling technologies,
increase the supply of renewable energy in Australia, and to facilitate the achievement of Australia’s
greenhouse gas emissions targets by providing financial assistance an d sharing knowledge to
accelerate innovation that benefits all Australians.
About Velox Energy Materials
Velox Energy Materials is a publicly traded energy materials company developing and progressing high-
value assets in resource and research- friendly jurisdictions. The Company’s priority focus is the
advanced NQV Project in Queensland, Australia. The NQV Project hosts the Cambridge Deposit with an
CIM compliant Indicated Mineral Resource of 61.33 Mt @ 0.34% V 2O5 and 234.6 ppm MoO3 along with
an Inferred Mineral Resource of 144.87 Mt @ 0.33% V2O5 (cut-off grade of 0.25% V2O5) and 241.9 ppm
MoO3 (Dufresne et al., 2022). The Company is targeting shallow, high-grade mineralisation that can be
developed using low-cost mining and processing options.
The Company additionally owns Kotai Energy and the option to acquire 100% of the intellectual property
rights associated with the Solid -State Hydrogen Storage Project from Curtin University in Western
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TSX-V Announcement
9 April 2024
Australia. Kotai is focused on the commercialisation of technology that can produce high-pressure
hydrogen following transport as an inert powder.
In October 2023, the Company acquired a package of tenements that are prospective for lithium in
eastern Quebec.
Please visit our website at www.veloxenergymaterials.com.au for further information.
Approved by the Board of Velox Energy Materials Inc.
Simon Coyle
President & CEO
+1 416-214-7577
Investor Relations Contact
Andrew Rowell
Investor Relations – Australia
M: +61 400 466 226
Email: [email protected]
Forward Looking Statements
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TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward -looking statements that are based on the Company’s expectations,
estimates and projections regarding its business and the economic environment in which it operates. Statements
about the closing of the transaction, expected terms of the transaction, the number of securities of Velox Energy
Materials that may be issued in connection with the transaction, and the parties' ability to satisfy closing
conditions and receive necessary approvals are all forward -looking informat ion. These statements are not
guarantees of future performance and involve risks and uncertainties that are difficult to control or predict.
Therefore, actual outcomes and results may differ materially from those expressed in these forward -looking
statements and readers should not place undue reliance on such statements. Statements speak only as of the
date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new
information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
The figures noted in this announcement are in USD and sourced from the Future of Hydrogen Report prepared by
the IEA. They are not actual costs nor forward looking statements or financial forecasts and are not indicative of
the future performance of the Company.