Optimism for hydrogen pilot in race to green steel

Australian-made green hydrogen technology is set to undergo a $30 million pilot project aimed at reducing production costs and emissions in steel production. The Australian Renewable Energy Agency (ARENA) has allocated $15 million for the testing facility in Victoria, which will be situated next to a steel manufacturing plant. The project builds upon an earlier trial of Hadean Energy's green hydrogen technology, which reportedly consumes 30% less electricity than traditional electrolysers, thus lowering production costs.

The pilot follows Fortescue's recent production of molten steel using an electric furnace, moving closer to green steel production. Additionally, a study highlighted the potential loss of value in Australia's $120 billion iron ore export market if it fails to transition to greener metals. Hadean Energy's solid oxide electrolysis technology uses waste industrial heat to reduce energy demands for hydrogen production, potentially making it cheaper than current methods.

ARENA chief executive Darren Miller emphasized that high costs have been a significant barrier to the widespread adoption of renewable hydrogen, and reducing its price could make it a more viable option for various industries. The pilot will assess the technology's performance in an actual industrial setting and provide evidence to evaluate its commercial potential.

The plant is expected to produce up to seven kilograms of green hydrogen per hour, which could supply most of the hydrogen required for a process that heats and cools steel, making it more adaptable.

The green hydrogen technology was originally developed by the CSIRO over eight years and has previously been tested at BlueScope's Port Kembla Steelworks in New South Wales. If the technology proves ready for commercial deployment, Energy Minister Chris Bowen believes it could find applications in other sectors, such as low-emission fuels and fertilizers.

Renewable hydrogen is crucial for cutting industrial emissions, especially when direct electricity usage is impractical. This trial aims to further reduce costs and accelerate the transition to greener metals, potentially benefiting Australia's iron ore export market.