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An Australian-developed electrolysis technology that uses industrial waste heat to reduce electricity consumption by around 30% is moving toward industrial testing, with a AUD 30 million pilot plant planned in Victoria.

Sydney-based Hadean Energy will build and operate the facility with AUD 15 million in funding from the Australian Renewable Energy Agency (ARENA), aiming to demonstrate whether the technology can improve the economics of green hydrogen production for steelmaking.

The project will test tubular solid oxide electrolysis (tSOE), a technology originating from research by Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) and now being developed for commercial deployment by Hadean. The system uses electricity and heat to split water into hydrogen and oxygen, with the potential to reduce electrical demand by using heat recovered from industrial processes.

According to Hadean, integrating waste heat can lower electricity consumption by approximately 30% compared with conventional electrolyzers. This could address one of the main cost pressures facing renewable hydrogen projects, where electricity consumption has a direct impact on production economics. However, the claimed reduction will need to be assessed under operating conditions, particularly regarding the availability, temperature and consistency of industrial heat sources.

Unlike conventional low-temperature electrolysis systems, solid oxide electrolysis operates at elevated temperatures, allowing part of the energy required for hydrogen production to be supplied as heat rather than electricity. This makes the technology particularly relevant to industrial sites where waste heat is already available. Its commercial potential, however, will depend on how effectively the system can integrate with existing industrial processes and maintain performance under variable operating conditions.

The Victorian pilot will supply hydrogen to a steel manufacturing facility, where Hadean will assess the technology in an industrial environment. The objective is to establish whether tSOE can support lower-emissions steelmaking while demonstrating its operational and economic performance beyond laboratory and development settings.

Steelmaking is a potential market for renewable hydrogen because hydrogen can replace coal-derived inputs in direct reduction iron production. However, the economics of this pathway remain closely tied to the cost and availability of renewable electricity and hydrogen. Reducing electrolyzer electricity requirements could improve project economics, although the overall benefit will also depend on capital costs, system efficiency, maintenance requirements and access to suitable waste heat.

ARENA has committed AUD 15 million toward the AUD 30 million project. Its chief executive, Darren Miller, said the pilot would provide evidence of the technology’s performance and commercial potential, with possible applications extending beyond steelmaking to other emissions-intensive industries.

The project also forms part of Australia’s efforts to develop domestic hydrogen technology and manufacturing capabilities. Federal Industry and Innovation Minister Tim Ayres linked the investment to the Future Made in Australia agenda, which aims to strengthen local industrial capacity and commercialize Australian-developed technologies.

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Anela Dokso is Project Manager at EnergyNews.biz, where she runs partnerships, sponsored campaigns, webinars and event coverage with energy companies and organizers. She coordinates the newsroom calendar and the EnergyNews.biz newsletter read by more than 72,000 energy professionals.

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