The Australian Renewable Energy Agency (ARENA) has invested $2 million in Lochard Energy’s venture to explore large-scale hydrogen production and storage in Victoria’s Otway Basin.
This funding marks a milestone in the development of renewable energy solutions aimed at enhancing the stability and reliability of the National Electricity Market (NEM) through innovative storage technologies.
The feasibility study, part of Lochard Energy’s H2RESTORE project, seeks to investigate the technical viability of storing hydrogen deep underground in porous rock formations, specifically sandstone. With a total project cost of $6.3 million, this 18-month study aims to lay the groundwork for the creation of a pilot facility and pave the way for the potential establishment of a commercial underground hydrogen storage facility.
Building upon the findings of a pre-feasibility study conducted in collaboration with CSIRO and Advisian in 2023, the current feasibility study aims to validate the technical and economic feasibility of underground hydrogen storage. The project aims to leverage Australia’s abundant renewable energy resources to address the challenges associated with long-duration energy storage.
Renewable hydrogen holds immense potential as a clean and sustainable energy carrier. However, the lack of cost-effective storage solutions poses a significant barrier to its widespread adoption. By tackling this critical issue, the H2RESTORE project aims to unlock the full potential of renewable hydrogen as a reliable and scalable energy storage solution.
The H2RESTORE project utilizes electrolysis to produce hydrogen, utilizing surplus energy sourced from the NEM. This hydrogen is then stored underground and can be converted back into electricity during periods of high demand, effectively firming the grid and ensuring a stable energy supply.
