Carbon280 seeks further funding for Hydrilyte technology

Perth-based materials-engineering company Carbon280 has announced it has signed a memorandum of understanding (MOU) with natural hydrogen explorer H2EX.

The agreement follows Carbon280’s presentation of its Hydrilyte technology at the Australian Natural Hydrogen Conference, where the company showcased results from mixed-gas testing, using a blend representative of natural hydrogen. The tests confirmed Hydrilyte’s ability to separate hydrogen from helium and other gases, while safely storing the hydrogen ready for transport, in a single, integrated step.

Hydrilyte is a proprietary, low-cost system that suspends a metal–hydride powder in mineral oil, enabling hydrogen to be captured, stored and transported at ambient temperature as a stable bulk solid. By combining separation and storage in one process, Hydrilyte aims to directly address the biggest challenge facing the emerging natural hydrogen industry: how to move hydrogen safely, cheaply and efficiently from wellhead to end user.

Momentum in natural hydrogen is building rapidly, with global drilling campaigns expanding through 2026, and the US Geological Survey forecasts there are vast global volumes of untapped natural hydrogen resources. As exploration moves towards production, the need for low-carbon, scalable infrastructure becomes critical.

“One of the biggest bottlenecks for natural hydrogen is how to separate, transport and store it safely,” said Mark Hanna, Founder and CEO of H2EX. “As H2EX progresses from exploration to production, we need a solution that can efficiently separate hydrogen from other gases and deliver it to customers. That’s why Hydrilyte is so important. It brings separation and logistics together in a single, elegant step.”

“Natural hydrogen developers are targeting production costs of US$1–2/kg,” said Mark Rheinlander, Founder and CEO of Carbon280. “Our goal is to keep separation, storage and release under US$1/kg at scale. When you combine natural hydrogen’s cost advantage with Hydrilyte’s simplicity and safety, you have a pathway to hydrogen that is globally competitive, low-carbon and ready for real-world industrial use.”

Carbon280 has now completed and commissioned its pilot plant, alongside its dedicated Kwinana laboratory where helium–hydrogen separation has been successfully demonstrated. Together, these facilities mark a major de-risking milestone and confirm the readiness of Hydrilyte for scale-up.

The company is now moving into its next phase, and is converting the pilot system to continuous operation, a critical step towards commercial deployment and large-scale natural hydrogen processing.

To accelerate this progression, Carbon280 has launched a seed funding round, targeted to close in February 2026. The investment will support optimisation of the continuous-flow process, expanded mixed-gas separation tests, and preparation for early pre-commercial field trials.

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