Australia is set to test an indigenous green hydrogen technology through a $30 million pilot project aimed at reducing hydrogen production costs and cutting emissions from steel manufacturing, The Canberra Times reported.
The Australian Renewable Energy Agency (ARENA) announced $15 million in funding for the proposed facility in Victoria, which will be developed by Hadean Energy in collaboration with industry partners. The pilot plant will be located at BOC’s facility in Hastings, southeast of Melbourne, near a steel manufacturing plant.
The project will build on earlier trials of Hadean Energy’s solid oxide electrolysis technology, which is designed to use industrial waste heat to reduce electricity consumption. The technology is expected to require around 30% less electricity than conventional electrolysers, potentially lowering the cost of green hydrogen production.
ARENA Chief Executive Darren Miller said the high cost of renewable hydrogen remained a major barrier to its wider adoption in industrial applications. He said the pilot would demonstrate the technology’s performance under real-world industrial conditions and provide evidence to assess its commercial potential.
Subject to final approvals, the facility is expected to produce up to seven kilograms of green hydrogen per hour. Most of the output could be used in a steel treatment process involving heating and cooling to improve the flexibility of the metal.
Miller said the project could support wider adoption of green hydrogen in steelmaking and other industrial sectors while strengthening Australia’s domestic hydrogen technology capabilities.
The technology was originally developed over eight years by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and has previously been tested at BlueScope’s Port Kembla Steelworks in New South Wales.
The pilot comes amid growing efforts to decarbonise Australia’s steel industry and preserve the value of its iron ore exports as global markets increasingly move towards lower-emission steel production. It also follows Fortescue’s announcement that it had produced molten metal using an electric furnace, marking progress towards commercial green steel production.
