Hydrogen energy storage manufacturer LAVO and global trading company ITOCHU Corporation have signed a Memorandum of Understanding to explore opportunities to utilise LAVO technology, which could ultimately lead to future investment by Itochu in the Lavo company.
Under the MoU, LAVO and ITOCHU will jointly investigate to develop a strategy for a hydrogen supply chain utilising LAVO’s technology.
They also plan a number of demonstration projects to meet industrial demand for decarbonisation, such as electricity supply to utility grid and metal and mining operation.
The tie-up is potentially a game-changer for Lavo, as Itochu not only plans to put its considerable marketing muscle behind the young company, but has foreshadowed financial backing for the company.
The companies said in a statement: “Outcomes from model projects will inform future investment and/or financing opportunities for LAVO.”
Lavo CEO Alan Yu said: “We are delighted to announce our collaboration with ITOCHU Corporation as it develops a new and exciting business model focussed on decarbonisation and sustainability. We look forward to working with key members of the team during this project and developing opportunities for ongoing collaboration.
“As a significant milestone in the development of our operations in the Japanese market, alongside a new clean hydrogen trade program of the Australian governments, this MoU further demonstrates our commitment to collaborating with leading organisations around the world to create a cleaner future through hydrogen.”
LAVO acts as a solar sponge for storing energy in the form of hydrogen, integrating with rooftop solar to capture and store renewable energy for use when needed by businesses or consumers.
The Lavo system creates hydrogen from water by electrolysis, storing it for future use in a patented metal hydride – seen encased in the red-topped cannisters in the photograph.
ITOCHU is a leading Japanese general trading company, with investments and trading of products across broad industries, including machinery, metal and minerals, energy and chemicals, food, general products, information and communications technology and textile.
Its business activities also include the development, management and investment in infrastructure projects, including potentially major clean hydrogen export projects mooted in Australia.
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