Hysata, a new company formed to commercialize cutting-edge electrolyser production technology, has raised $5 million to advance its development. The round was sponsored by global technology investor IP Group and the CEFC.
Clean Energy Innovation Fund Executive Director Ben Gust said: “Hysata’s advanced electrolyser technology has the potential to significantly improve the efficiency of hydrogen production, an important step in making it a more economic source of clean energy. Hydrogen offers significant emissions abatement opportunities across the economy, both here in Australia and globally. We are proud to be investing $750,000 in the early commercial development of this exciting Australian university research.
“Australian researchers are known for their innovative solutions to big challenges. Bringing down the cost of hydrogen production will accelerate the development of this exciting industry, similar to the pathway we have seen with large-scale solar, where Australia is now a world leader.”
Paul Barrett, Head of Physical Sciences at IP Group Australia and Hysata Interim CEO said: “Hysata represents a once in a lifetime opportunity to reshape an industry. I’m delighted to be working with Professor Swiegers and the team at the University of Wollongong to bring this technology to market. This will have an impact both economically and environmentally on our path to net zero.”
Michael Molinari, IP Group Australia Managing Director said: “We have been looking globally for new technology that can unlock the trillion-dollar opportunity in hydrogen. The Hysata technology is truly world-leading, and we’re very excited to help the team in their mission to make green hydrogen a reality for Australia and the world. This company is a great example of the tremendous economic opportunities that can be unlocked by the research being done at our universities.”
A global race is on to supply affordable, safe, and efficient hydrogen energy that can expand rapidly — an increasing number of countries, including Australia, have developed national hydrogen agendas.
Clean hydrogen generated from renewable energy sources rather than fossil fuels has the potential to considerably reduce emissions in a number of difficult-to-abate businesses. These include the production of methanol, fertilisers, and chemicals, the manufacture of steel, industrial heating, and long-haul freight transit.
Producing clean hydrogen at a cost of less than $2 per kilogram is a stretch goal set by the Australian government in its Low Emissions Technology Statement 2020. Attaining the aim will require major cost reductions in existing energy-intensive manufacturing processes.
The Australian Hydrogen Market Study, commissioned by the CEFC and conducted by global energy consultants Advisian, evaluates which industries are on the verge of becoming hydrogen competitive and discusses the obstacles and economic possibilities of hydrogen.
According to the report, electrolyser capital costs and efficiency were critical factors in accelerating the development of a hydrogen industry in Australia, highlighting the need for technical evolution that increased electrolyser efficiency, resulting in lower operating costs, in order to reduce the farm gate cost of green hydrogen prior to 2050.
CEFC CEO Ian Learmonth added: “The versatility of hydrogen means it can be used in a wide range of processes, making it an ideal energy carrier as Australia transitions to a low carbon economy. Advances in hydrogen technology offer a credible pathway to cutting emissions from high intensity sectors, which might otherwise lack large, scalable energy options.”
“The CEFC has a strong focus on hydrogen-related investments, and we are actively pursuing large-scale investment opportunities through our new $300 million Advancing Hydrogen Fund. As expected, these large-scale investments can take time to develop, and we are looking forward to reaching financial close on our first large-scale transaction. In the meantime, we are delighted to have been able to use the experience and start-up investment focus of our specialist Innovation Fund to make this investment in Hysata.”