Alpha HPA Limited (ASX: A4N) is pleased to announce that the National Reconstruction Fund Corporation (NRFC) has approved a $75 million investment in the Company, supporting delivery of the HPA First Project in Gladstone, Queensland.
The NRFC investment was made as a cornerstone commitment in a $225 million funding round, acting as a catalyst to successfully crowd in a further $150 million from institutional investors, which included on-going support from Orica Limited & AustralianSuper to complete the raise.
The investment is strongly complementary to Alpha HPA's existing long-term funding support from the Northern Australia Infrastructure Facility (NAIF), Export Finance Australia (EFA) and Queensland Investment Corporation (QIC), and follows NRFC's comprehensive due diligence process. It reflects strong alignment with the Fund's mandate to support Australian manufacturing capability, value-adding, supply chain resilience and economic sovereignty.
Alpha HPA's Managing Director Rob Williamson said the investment was a significant milestone for both the Company and Australia's advanced manufacturing sector.
“NRFC's investment is a strong endorsement of Alpha HPA's strategy, technology and role in building sovereign manufacturing capability in Australia,” Mr Williamson said.
“High Purity Alumina is a critical input into semiconductors, lithium-ion batteries and pharmaceutical manufacturing, where ultra-high purity materials are essential for performance, safety and reliability. Our Gladstone HPA First Project positions Australia as a trusted supplier into diversified global supply chains.”
Mr Williamson said the project would deliver substantial economic and employment benefits for regional Queensland.
“Alpha HPA currently employs around 130 people, and once operational in 2027 the HPA First Project will create approximately 120 additional full-time jobs,” he said.
“During construction, the project is expected to generate more than 420 jobs, supporting skills development and long-term industrial capability in Gladstone.”
Mr Williamson said the Gladstone location provided a strong industrial foundation for the project.
“Gladstone is already home to globally significant industrial operators and offers established infrastructure, a skilled workforce and a deep industrial ecosystem,” he said.
“The facility builds on this foundation, reinforcing Gladstone's role as a hub for next-generation, low-emissions manufacturing.”
The HPA First Project is designed to operate on 100 per cent renewable electricity, using Alpha HPA's proprietary processing technology. The process delivers near-zero waste, low-emissions production and a purity profile that differentiates Alpha HPA globally.
“We are now in the supply chain for semiconductors for AI at small volumes with production from our Stage One facility thanks to the technological advantage our unique process offers over our competitors.” Mr Williamson said.
“The unique selling point of our materials is what underpins customer demand and positions Alpha HPA as a long-term supplier of choice into these expanding, critical global markets.”
NRFC Chief Executive Officer David Gall said the investment reflected the strategic and national importance of Alpha HPA's project.
“This investment backs a truly innovative Australian company while also strengthening Australia's economic security and supply chain resilience around a critical material that is essential to the future economy,” Mr Gall said.
“The National Reconstruction Fund is delighted to support an Australian company commercialising breakthrough intellectual property to produce materials that Australia and the world will increasingly rely on.”
Alpha HPA emphasised that the NRFC investment complements its existing funding arrangements and reflects continued confidence from senior debt financiers and institutional investors.
Export Finance Australia (EFA) Managing Director and CEO John Hopkins reinforced the value of the HPA First Project.
“EFA welcomes the next step in Alpha HPA's investment and financing arrangements. We look forward to continuing to work with Alpha HPA, which is receiving support through the Australian Government's critical minerals facility and our own commercial account,” Mr Hopkins said.
Northern Australia Infrastructure Facility (NAIF) Chief Executive Officer Craig Doyle said the NRFC support reinforces the strategic importance of the Gladstone development, and NAIF is pleased to see the NRFC become a shareholder while continuing to proudly support the HPA First Project.
“NRFC's participation reflects growing confidence in a project that will deliver jobs, skills and advanced manufacturing capability in regional Queensland,” Mr Doyle said.
Alpha HPA noted that the capital raising reflects the opportunity to strengthen the balance sheet, accelerate delivery and position the Company for future growth.
“Demand fundamentals across semiconductors and other advanced manufacturing continue to strengthen,” Mr Williamson said.
“As the HPA First Project progresses, Alpha HPA is also assessing opportunities to expand the project through a potential third stage, reflecting customer interest and the scalability of our technology platform.”
Settlement of the institutional placement is expected following completion of the capital raising process.