The Australian Renewable Energy Agency (ARENA), on behalf of the Government, has approved up to AUD9.41m (£5.2m) funding to Hazer Group for the construction and operation of an advanced hydrogen production facility in Munster, Western Australia.

Western Australia-based renewable energy company Hazer is planning to build an AUD15.8m (£8.8m), 100 tonne per annum facility, which will feature its advanced hydrogen production technology that converts biogas from sewage treatment into hydrogen and graphite.

Hazer Managing Director, Geoff Ward said: “We are delighted to have progressed through ARENA’s process and been selected for funding. We gratefully acknowledge the support of the Australian Government through the important phase of commercial development for this novel Australian technology.

“There is very significant interest in the potential for hydrogen to play an important role in the Australian economy through providing energy storage, services in grid support and resilience, in direct use as a transport fuel, and as a source of low emission heat and power.

Hazer targets to complete construction of the facility by December 2020

Hazer said that it has developed an advanced process technology that converts bio-methane to renewable hydrogen and graphite using iron ore as a catalyst, and creates an alternate hydrogen pathway to the traditional approaches of steam methane reforming and electrolysis.

In addition, it is planning to sell renewable hydrogen for industrial applications and is exploring markets for graphite including carbon black, activated carbon and battery anode applications.

Hazer is targeting wastes or low-value biogas streams including wastewater treatment plants, landfill sites and other industrial locations for the production of higher value hydrogen and graphite, and has selected the Woodman Point Wastewater Treatment Plant, located in Munster, West Australia, for the location of the hydrogen project.

Woodman Point Wastewater Treatment Plant is owned by Western Australian Water Corporation (WA Water Corporation).

The company has signed a Memorandum of Understanding with WA Water Corporation for the supply of biogas and to provide the project site for construction. It aims to complete construction by December 2020 and start operations in January 2021.

ARENA said that the funding is subject to a funding agreement executed based on conditions including a biogas supply agreement, a hydrogen offtake agreement, and Hazer securing sufficient finance for the completion of the project.

Ward added: “The completion of the Hazer Commercial Demonstration Plant is a key step to demonstrate the robustness and value of our technology and position Hazer to capture opportunities in this important growth market.”