10 May 2024

Hysata's $111M Boost to Scale up Hydrogen Production as Industry Gains Strength

10 May 2024  by proactiveinvestors   

Green hydrogen is a critical source of fuel for decarbonising heavy industry metals and according to Federal energy minister Chris Bowen, is a vital part of Australia’s future.

The International Energy Agency (IEA) predicted a net-zero world will require 306 million tonnes of green hydrogen production each year by 2050, a goal Australia will play an important role in meeting.

“This technology can help drive down the cost of hydrogen production and decarbonise energy-intensive sectors like steel, fertiliser and shipping,” Bowen said.

The Federal government recently doubled down on its commitment to build an integrated hydrogen supply chain within Australian shores. It recently made a $1.66 million grant to the Aboriginal Clean Energy Partnership (ACEP) through the Australian Renewable Energy Agency (ARENA).

The funding will support the first phase of a feasibility study for the East Kimberley Clean Energy and Hydrogen Project, which is expected to produce 50,000 tonnes of renewable hydrogen per year through solar-powered electrolysis.

“Manufacturing electrolysers in Australia is a huge opportunity to shore up essential supply chains and leverage our innovation to capture more of the global renewable energy technology chain,” Bowen said.

We’ll come back to electrolysers shortly.

Hydrogen projects continue at pace

Proactive readers would know the work Elixir Energy Ltd (ASX:EXR, OTC:ELXPF), Gold Hydrogen Ltd (ASX:GHY) and Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) are doing in the space.

Gold Hydrogen’s focus is on the Ramsay Project in South Australia where State Department geologists reported finding natural hydrogen gas while exploring for oil during the 1920s and 30s.

More than a century later, the company is looking at these results with a new understanding that naturally occurring hydrogen could be the key to unlocking a low-cost fuel source.

Gold Hydrogen has a 100% ownership of the Ramsay Project covering 7,820 square kilometres on the Yorke Peninsula and Kangaroo Island in South Australia.

Elixir Energy operates in Mongolia and while it is primarily focused on gas, its hydrogen exploration — a venture with Japan’s SB Energy Corp — puts it in proximity to a hydrogen market that can be reached by a pipeline and not a boat, making it a potentially global Tier One green hydrogen project.

Provaris’s integrated hydrogen compression shipping project involves producing green hydrogen from renewable energy-based electrolysis and shipping it to markets around the world via PV1’s proprietary gaseous hydrogen containment tank technology.

The company is developing a 2.6-gigawatt (GW) green electrolysis facility on the Tiwi Islands which will export up to 90,000 tonnes of hydrogen per year and has signed a collaboration agreement with Norwegian Hydrogen AS to develop projects for the green hydrogen value chain in the Nordic countries with potential to expand to the rest of Europe.

CEO Martin Carolan recently sat down with me to discuss the latest developments with Norwegian Hydrogen and highlighted the strategic location of the Norway sites, being ideally placed to serve major chemical refineries in East Germany, contrasting with previous focuses in West Germany.

Electrolysers are a key ingredient to produce green hydrogen at large scale

While it’s a fairly young company, Hysata, an Australian green hydrogen electrolyser manufacturer, recently raised US$111.3 million in a Series B funding round co-led by bp Ventures and Templewater, with each contributing $10 million.

The investment aims to support Hysata's development of high-efficiency electrolysers that promise to produce green hydrogen more efficiently and cost-effectively than current alternatives. The technology at the core of Hysata's strategy is a unique capillary-fed alkaline electrolyser that requires less energy to convert water into hydrogen.

The funding round saw significant participation from existing investors such as IP Group Australia, Kiko Ventures, Virescent Ventures on behalf of Clean Energy Finance Corporation, Hostplus, Vestas Ventures, and BlueScopeX. New major strategic and financial investors also joined, including POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group Co., Twin Towers Ventures, Oman Investment Authority’s VC arm IDO, and TelstraSuper.

The influx of capital will enable Hysata to expand its production capacity at its beachside manufacturing facility in Wollongong, New South Wales. The company aims to scale up to gigawatt-level manufacturing, focusing on enhancing and broadening the reach of its innovative electrolyser technology.

“Our mission at Hysata is to accelerate the deep decarbonisation of hard-to-abate sectors such as steel, chemical manufacture, and heavy transport, by delivering the world’s most efficient, simple, and reliable electrolysers,” Hysata CEO Paul Barrett said.

“With high-efficiency, intrinsically low capex and a mass-manufacturable design, Hysata aims to drive down the levelised cost of hydrogen.

“This funding round, backed by a world class syndicate of investors, demonstrates the game changing impact Hysata is having on the green hydrogen landscape. It will strengthen our team and enhance our capabilities, as we propel towards widespread commercial availability.

“I am thrilled to have bp Ventures, Templewater and other new investors join ranks with our incredible existing shareholder base. Hysata’s technology is a breakthrough innovation because of its high efficiency and low installed costs. We look forward to working with our shareholders, customers and partners as we continue our scale up journey.”

The IEA has highlighted the critical importance of transitioning to low-carbon hydrogen for both existing uses and expanding its application into new sectors such as heavy industry and long-distance transport.

This is essential to meet global climate ambitions. In this context, Hysata's technology presents a significant advancement. The company's electrolysers, designed to be more energy-efficient and cost-effective, are poised to exceed the 2050 energy efficiency targets set by the International Renewable Energy Agency (IRENA).

Hysata's tech set to surpass 2050 hydrogen efficiency targets

Hysata's unique capillary-fed alkaline electrolyser technology is particularly notable for its potential to operate at higher energy efficiencies than currently available systems. This capability could be crucial in scaling up low-carbon hydrogen production necessary for reducing greenhouse gas emissions in critical industries and transport sectors.

The recent investment will further enable Hysata to expand its production capabilities. The funding will support the scaling of its operations to gigawatt manufacturing levels at its facility in Wollongong, New South Wales. This scale is vital for meeting the increasing demand for green hydrogen as part of the global energy transition.

Gareth Burns, Vice President of bp Ventures, added: “We know that green hydrogen can play a big role in decarbonisation. This is the first advanced alkaline electrolyser technology that bp Ventures has invested in. It could provide optionality for our hydrogen business as bp aims to become a global leader in low carbon hydrogen production.

“Hysata’s technology could help save energy and reduce production costs, addressing two challenges of the green hydrogen market. We’re excited for Hysata’s next steps.”

Hydrogen is one of bp Ventures’ transition growth engines that it plans to grow by the end of the decade. bp has a number of regional hydrogen energy hubs it is developing, including in Australia, such as H2 Kwinana and the Australian Renewable Energy Hub (AREH).


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