Delays and Extensions: What Iron Road’s Revised Land Deals Mean for Cape Hardy
Iron Road Ltd has agreed revised terms with Revera Energy to extend and adjust land purchase options critical to the Cape Hardy green hydrogen project in South Australia.
- Extension of first land purchase option to 31 December 2025
- Second option remains exercisable until 31 March 2026
- Third option's sunset date brought forward to 30 June 2027
- Non-refundable $2.5 million deposit received post-FIRB approval
- Ongoing collaboration on green hydrogen as feedstock for green iron products
Revised Land Purchase Terms Signal Progress
Iron Road Ltd (ASX, IRD) has announced updated commercial terms with Revera Energy, a Carlyle-backed energy infrastructure company, regarding three land purchase options at Cape Hardy on South Australia's Eyre Peninsula. These parcels are earmarked for Revera's ambitious green hydrogen project, a key initiative in the region's renewable energy landscape.
The first option, covering a 24-hectare gulf-front parcel, has had its sunset date extended to 31 December 2025. This extension follows a previous five-month extension and reflects ongoing negotiations to solidify Revera's footprint in the area. The larger 604-hectare site, including this parcel, remains central to the proposed hydrogen infrastructure.
Balancing Flexibility and Commitment
The second land purchase option, valued at $4.27 million, retains its original sunset date of 31 March 2026, while the third and final option, priced at $6.75 million, has been accelerated by six months to 30 June 2027. This adjustment offsets the extension granted on the first option, balancing Iron Road's and Revera's strategic timelines.
Importantly, Iron Road received a $2.5 million deposit from Revera in August 2024, which became non-refundable following Foreign Investment Review Board approval. This deposit underscores the seriousness of Revera's commitment and provides Iron Road with immediate capital while securing the land options.
Strategic Collaboration on Green Hydrogen and Iron Products
Beyond land transactions, Iron Road and Revera Energy are exploring synergies between Revera's planned 1GW electrolyser capacity for green hydrogen production and Iron Road's green iron product ambitions. The potential use of green hydrogen as a feedstock for direct reduction grade pellets could position Cape Hardy as a pioneering hub for integrated renewable energy and sustainable iron manufacturing.
This collaboration aligns with broader industry trends seeking to decarbonise heavy industries through green hydrogen, and it may enhance the economic viability and environmental credentials of both companies' projects.
While the revised land option terms provide clarity and momentum, the timeline for exercising these options and the ultimate scale of development remain to be seen. Market watchers will be keen to monitor subsequent milestones and any further financial commitments.
Bottom Line?
These land option adjustments mark a pivotal step for Iron Road and Revera Energy, setting the stage for Cape Hardy’s emergence as a green hydrogen and iron production hub.
Questions in the middle?
- What are Revera Energy’s detailed timelines for exercising the remaining land options?
- How will the integration of green hydrogen impact Iron Road’s iron product development plans?
- What are the potential risks or delays that could affect the Cape Hardy project’s progress?
