The announcement more than doubled ReNu’s share price to 9.3 cents.

The deal would enable ReNu and its subsidiary Countrywide to progress hydrogen projects from concept to production.

Countrywide managing director Geoff Drucker said it would also allow the company to meet its objective to be a first mover in domestic green hydrogen production to markets such as transport, decarboninising gas networks and industrial applications.

He said the funds would be used for new and existing projects with immediate effect.

Drucker also believed super funds would increasingly invest in the sector as their members pushed for greater action on climate change.

The projects would have hydrogen facility linked to renewable energy projects “behind the meter”, which was the only way of making green hydrogen viable.

The deal is a significant boost for the hydrogen sector and marks a substantial new phase in funding from superannuation funds which have already moved into new areas such as social housing through the Australian Retirement Trust’s recent deal with QIC.

ReNu, which invests in renewables, bought Countrywide in February. It originates and develops renewable energy projects. It currently has four renewable hydrogen projects under development in Australia – two in Tasmania and two in Victoria.

ReNu chairman Boyd White said with Hesta’s funding the company could look forward to delivering green hydrogen and contributing to a low carbon future.

HESTA chief investment officer Sonya Sawtell-Rickson said the fund was thrilled to be investing in the development of green hydrogen.

“We continue to look for opportunities like this to invest in innovative technologies and businesses that will support the transition to a low carbon future,” she said.

“Investments like this will help create jobs and support communities, while delivering attractive risk-adjusted returns for our members.

“By proving innovative climate solutions, this investment will also serve members’ best interests over the long term by contributing to an equitable, orderly and timely transition to net zero emissions by 2050 in order to minimise the systemic risks of climate change.”

ReNu’s chief executive Greg Watson said the task for the company was to now advance to definitive agreements as soon as possible and progress commercial discussions with project partners over green hydrogen offtakes.

Under the deal ReNu would be responsible for the delivery and operation of the projects and would be entitled to a fee for originating and progressing green hydrogen projects.

ReNu would also be responsible for debt funding and grants and HESTA would have the first right of refusal to invest in existing green hydrogen projects.

The term sheet is a non-binding framework that was intended to be converted into definitive agreements.