ARENA backs hydrogen technology for steelmaking pilot

ARENA has announced it has awarded $15 million in funding to Hadean Energy to trial a hydrogen technology that could help to lower the cost of green hydrogen for industry.

The $30 million project will see Hadean build and operate a pilot hydrogen plant in Victoria, with the hydrogen produced to be used at another industrial facility in steel manufacturing processes, providing a practical test of whether the technology can support lower-emissions steelmaking.

Green hydrogen is expected to play an important role in reducing emissions from industries that are difficult to electrify, including green iron and steel and aviation, but high production costs remain one of the key barriers to wider industrial uptake.

Hadean estimates its technology could produce hydrogen using around 30% less electricity than conventional electrolysers.

The project supports ARENA’s broader focus on reducing the cost of green hydrogen by testing Australian-developed technology in an operating industrial environment. If successful, the technology could improve the economics of hydrogen production and support future deployment across a range of industrial applications.

ARENA CEO Darren Miller said reducing electricity use could help make green hydrogen more affordable and practical for industry.

“Green hydrogen has significant potential to reduce emissions from industries that are difficult to electrify, but the cost of production remains a major barrier,” he said. “This pilot will demonstrate how Hadean’s technology performs in a real-world industrial environment and provide the evidence needed to assess its commercial potential.

“This could open the door to broader use of green hydrogen in steelmaking and other industrial applications, while helping build Australia’s hydrogen industrial capability.”

The pilot plant is expected to produce up to 7 kg of hydrogen per hour and supply around 85% of the hydrogen needed for an annealing process in steel manufacturing.

The technology was originally developed by Australia’s national science agency, CSIRO, over eight years with previous support from ARENA.

Image credit: iStock.com/RicAguiar