The Clean Energy Finance Corporation (CEFC) is backing HydGene Renewables, a new Australian company that has developed an alternative green hydrogen solution that turns biomass into hydrogen in a process that is both renewable and carbon negative.
The HydGene technique uses novel biocatalysts to convert the sugars derived from organic waste, including agricultural waste, into valuable products like hydrogen. The process takes place in HydGene-designed modular plants, enabling localised green hydrogen production in rural and remote areas, where the cost of transporting hydrogen can be high.
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Backed by a $2 million investment from the CEFC via the CEFC Clean Energy Innovation Fund, HydGene’s $6 million seed raise also attracted $2.5 million from lead investor Agronomics, a specialist UK investor. HydGene will draw on the additional capital to establish a pilot plant, expand its team and conduct further research.
The CEFC investment is managed by specialist climate-tech venture capital manager Virescent Ventures.
Spun out of research begun at Macquarie University, HydGene has engineered bacteria to produce an innovative biocatalyst, converting sugars derived from biomass to hydrogen gas. The highly efficient biocatalyst system can be scaled up or down to meet demand.
HydGene CEO and co-founder Dr Louise Brown said, “We are grateful for the overwhelming support in this round from our lead investor, Agronomics, and are equally thrilled to have secured the backing of the CEFC as a strategic investor, bringing us one step closer to revolutionising the chemical manufacturing and energy industries.
“With our specialised biocatalyst, we can efficiently upcycle waste biomass sources to produce green molecules under favourable conditions. Our innovative technology not only paves the way for the growth and adoption of decentralised manufacturing hubs, but also plays a crucial role in the global transition to an affordable, green hydrogen economy. We remain confident in the ability of our new technology to accelerate the global drive towards a net-zero economy while also opening up market opportunities for green chemical manufacturing.”
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Demand for hydrogen reached 94Mt in 2021 and is projected to reach 115Mt by 2030, with the Global Hydrogen Council projecting that hydrogen could supply up to a fifth of global energy needs and generate a market worth US$2.5 trillion by 2050. Today, low emission hydrogen accounts for less than one per cent of total global production.
HydGene joins Hysata and Ark Energy in the CEFC hydrogen portfolio, with further growth expected via the new Hydrogen Headstart program announced in the recent Federal Budget. HydGene is a Macquarie University spinout, formed after receiving funding as one of 16 research projects included in an ARENA 2018 program to propel innovation in renewable energy.
