Australia Backs Plan to Convert Biogas From Waste Into Hydrogen

(Bloomberg) -- The world’s first project to turn biogas from sewage into hydrogen and graphite has received backing from the Australian government as part of the nation’s efforts to develop hydrogen as a clean alternative fuel source.

The Australian Renewable Energy Agency granted conditional approval for up to A$9.4 million ($6.3 million) in funding for the 100 ton per annum project, which uses technology developed by Sydney-listed Hazer Group Ltd. The facility is expected to begin operations in January 2021, Arena said in a statement.

“Hazer’s process represents an alternative way to produce hydrogen using biogas sourced from wastewater treatment plants,” said Arena CEO Darren Miller. “If successful, this project will offer opportunities to replicate the technology across other treatment plants and landfill sites across Australia.”

Australia is exploring ways to build a hydrogen export industry, with an Arena-commissioned report last year showing the industry could be worth A$1.7 billion to the economy annually and create 2,800 jobs by 2030.

Hazer plans to sell the renewable hydrogen for industrial applications and is exploring markets for graphite including carbon black, activated carbon and battery anode applications. The funding will account for 41% of the total costs, including a contribution to operating costs, according to the statement.

To contact the reporter on this story: James Thornhill in Sydney at jthornhill3@bloomberg.net

To contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net, Jasmine Ng

©2019 Bloomberg L.P.