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Green hydrogen technology company Hysata has gained a foothold in Saudi Arabia where it has secured an agreement with infrastructure investor ACWA Power to develop commercial-scale electrolyser systems in the oil-rich kingdom.
Wollongong-based Hysata is hailed as Australia’s leading green hydrogen electrolyser manufacturer and is backed by major investors in the field including global oil giant BP’s investment arm BP Ventures which participated in a US$111 million ($172 million) capital raise last year, the largest clean tech Series B in Australia’s history.
Under the agreement with ACWA Power, a Saudi Arabia-headquartered investor, developer and owner of power generation and desalinated plants, Hysata will build commercial-scale demonstrations of its patented “high efficiency capillary-fed electrolysis technology”.
The technology, which uses only 41.5 kWh of electricity to produce one kilogram of hydrogen, is seen as a significant step towards Saudi Arabia’s plans to unlock green hydrogen opportunities in the kingdom and across the Gulf region using Hysata’s world-leading electrolysers.
ACWA Power is described as a pioneer in the region’s power generation, desalination and green hydrogen sector with the Hysata initiative lending support to Saudi Arabia’s Vision 2030 goals which are aimed at diversifying the economy.
“We were especially attracted to their pipeline of large-scale green hydrogen projects with strong offtakes, their deep expertise across the energy supply chain in the Middle East, and an impressive ability to execute large-scale projects at a rapid pace,” says Hysata founder and CEO Paul Barrett.
“Green hydrogen through its use as a chemical feedstock is critical for decarbonising heavy industry and for creating new export markets for products such as green iron, steel, and green ammonia.
“The Middle East offers all the ingredients to be a green hydrogen leader with low cost and abundant renewable capacity, ambitious hydrogen investments and attractive incentives for manufacturing.”
Barrett credits ACWA Power for driving “rapid progress” in the sector across the Gulf region.
“Compounding these advantages, Hysata’s industry-leading efficiency, simplified balance-of-system, and design for high-volume manufacturing creates an unmatched LCOH (levelised cost of hydrogen) advantage for our customers, leading to a strong business case for green hydrogen,” he says.
Hysata is progressing commercialisation of its electrolysis technology which the company says will redefine the economics of green hydrogen production.
The technology is said to deliver more energy efficient green hydrogen at a lower cost to alternative technologies. It does so by combining engineering and science in a unique capillary-fed alkaline electrolyser that uses less energy to convert water to hydrogen.
With electricity the prime cost impairment to green hydrogen production, the company’s high-efficiency electrolyser is considered to be at the cutting edge of technology for the sector.
After securing $172 million in its Series B round last year, Hysata planned to use the capital funding to expand production capacity at its manufacturing facility in Wollongong while further developing its technology with a focus on reaching gigawatt scale manufacturing.
In December, Hysata announced it had secured a joint development agreement with South Korean steel manufacturer POSCO Holdings to collaborate on engineering and construction of high-efficiency electrolysers.
The company said at the time that the joint venture builds on the strategic partnership established last year through POSCO Holdings’ investment in Hysata’s Series B funding round.
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