The Australian Renewable Energy Agency (ARENA) has announced $15 million in funding to Hadean Energy to trial an innovative, Australian-developed hydrogen technology that could help to lower the cost of green hydrogen for industry.
The $30 million project will see Hadean build and operate a pilot hydrogen plant in Victoria, subject to final deployment arrangements and approvals. The hydrogen produced there will be used at another industrial facility in steel manufacturing processes, providing a practical test of whether the technology can support lower-emissions steelmaking.
Green hydrogen is expected to play an important role in reducing emissions from industries that are difficult to electrify, including green iron and steel, and aviation, but high production costs remain one of the key barriers to wider industrial uptake.
Hadean estimates its technology could produce hydrogen using around 30% less electricity than conventional electrolysers.
The project supports ARENA’s broader focus on reducing the cost of green hydrogen by testing Australian-developed technology in an operating industrial environment. If successful, the technology could improve the economics of hydrogen production and support future deployment across a range of industrial applications.
ARENA CEO Darren Miller said reducing electricity use could help make green hydrogen more affordable and practical for industry.
“Green hydrogen has significant potential to reduce emissions from industries that are difficult to electrify, but the cost of production remains a major barrier,” Mr Miller said.
“This pilot will demonstrate how Hadean’s technology performs in a real-world industrial environment and provide the evidence needed to assess its commercial potential.”
“This could open the door to broader use of green hydrogen in steelmaking and other industrial applications, while helping build Australia’s hydrogen industrial capability.”
The pilot plant is expected to produce up to 7 kilograms of hydrogen per hour and supply around 85% of the hydrogen needed for an annealing process in steel manufacturing.
The technology was originally developed by Australia’s national science agency, CSIRO, over 8 years with previous support from ARENA. This funding will support Hadean to progress its technology towards commercial readiness, while helping to build local expertise, supply chains and advanced manufacturing capability.
In addition to producing hydrogen more efficiently, the technology could also be used in the future to create low-emissions synthetic fuels, which may help reduce emissions in sectors dependent on energy-dense fuels.
For more information about the Advancing Renewables Program, visit the ARENA funding page.