The Clean Energy Finance Corporation (CEFC) has made a significant investment in HydGene Renewables, a company that has developed an innovative green hydrogen solution by converting biomass into hydrogen using a renewable and carbon-negative process.
This breakthrough technique, known as the HydGene technique, utilizes novel biocatalysts to convert sugars derived from organic waste, including agricultural waste, into valuable products like hydrogen.
One of the key advantages of the HydGene technique is its ability to establish modular plants, allowing for localized green hydrogen production in rural and remote areas. This is particularly beneficial in regions where the cost of transporting hydrogen is high, making it more economically viable and sustainable.
The CEFC has invested $2 million in HydGene through the CEFC Clean Energy Innovation Fund, while the company also raised $6 million in seed funding, with Agronomics, a specialist UK investor, contributing $2.5 million as the lead investor. This injection of capital will support the establishment of a pilot plant, team expansion, and further research and development efforts.
HydGene emerged as a spinout from Macquarie University after receiving funding as part of the Australian Renewable Energy Agency’s 2018 program aimed at promoting innovation in renewable energy. The company has engineered bacteria to produce a unique biocatalyst capable of converting biomass sugars into hydrogen gas.
Dr. Louise Brown, CEO and co-founder of HydGene, highlighted the potential of their technology to not only contribute to the growth of decentralized manufacturing hubs but also play a crucial role in the global transition towards an affordable, green hydrogen economy. The innovative solution offers opportunities for green chemical manufacturing while accelerating the drive towards a net-zero economy.
CEFC CEO Ian Learmonth expressed enthusiasm for backing HydGene and its groundbreaking technology. The investment aligns with the CEFC’s commitment to supporting innovative and sustainable solutions. Learmonth emphasized the importance of developing technologies like HydGene’s to foster Australia’s green hydrogen industry as a crucial component of the country’s net-zero emissions economy.
The recent Federal Budget introduced the Hydrogen Headstart program, which aims to provide revenue support for renewable hydrogen production investments and bridge the commercial gap for early hydrogen projects. As part of this program, the CEFC will offer equity and debt financing for Hydrogen Headstart projects through the existing CEFC Advancing Hydrogen Fund.
The investment in HydGene Renewables represents another significant step towards advancing the production of green hydrogen from biomass. By harnessing the power of biocatalysts and modular plants, HydGene’s innovative approach has the potential to drive the adoption of green hydrogen and contribute to the global shift towards a sustainable and decarbonized future.
