The Australian government has committed AUD $15m ($10.5m) in funding to a pilot green hydrogen facility targeting low-carbon steelmaking.
The Australian Renewable Energy Agency (ARENA) funds will cover half the cost of Hadean Energy’s project in Victoria, which aims to reduce green hydrogen costs to support steel and other industrial applications.
Hadean claims its solid oxide electrolysis (SOEC) plant, which integrates technology developed by the Australia-based Commonwealth Scientific and Industrial Research Organisation (CSIRO), can produce 7kg of hydrogen per hour using 30% less energy than conventional electrolysers.
Although often more efficient than PEM and alkaline electrolysis, SOEC electrolysis has been held back by degradation, caused by the high temperatures at which it runs (650-850°C).
Darren Miller, CEO at Arena, said the pilot project would be used to demonstrate Hadean’s technology in real-world operation, and “assess its commercial potential.”
The pilot plant is intended to supply 85% of the hydrogen needed for the steel production’s annealing process, in which it is used as a protective atmosphere to prevent oxidation and improve surface quality during heat treatment.
While many hydrogen-focused developments in steelmaking have centred on the direct reduction process, rather than annealing, the molecule is broadly poised as an important decarbonisation method in the sector.
However, high costs have beset many steelmakers aiming to integrate hydrogen-based processes.
ArcelorMittal dropped two projects in Germany, while Stegra’s project in Sweden has come across several hurdles.