Perth startup Carbon280 just launched a $16m pilot plant testing hydrogen storage tech that works at normal temperature and pressure.
What’s happening: Perth-based Carbon280 has launched a $16 million pilot plant in Kwinana to test its Hydrilyte hydrogen storage technology, which stores hydrogen safely at normal temperature and pressure.
Why this matters: Australia’s hydrogen industry faces mounting challenges with major projects cancelled and billions in pledged investments stalled, making breakthrough storage solutions crucial for the sector’s survival.
A Perth startup believes it has solved one of hydrogen’s biggest problems: how to store and transport the gas without expensive, dangerous high-pressure systems.
Carbon280 this week launched its state-of-the-art Hydrilyte Technology Pilot Plant in Kwinana, Western Australia, after raising over $16 million to accelerate development of what it calls a game-changing liquid hydrogen storage solution.
The timing couldn’t be better. Australia’s hydrogen industry is grappling with mounting challenges, with major players like bp, Origin Energy, and Stanwell Corporation pausing projects amid rising costs and technical complexity. The struggles reflect broader energy sector transformation challenges facing Australian businesses.
Pilot plant goes live
The pilot facility was funded through a $10.6 million seed investment led by Woodside Energy, with support from UK-based renewable energy company Hive Energy and a Singaporean family office, plus a forecast $5.5 million in R&D rebates from the Australian Government.
The 100kW prototype will prove the Hydrilyte technology at industrial scale, delivering critical performance data for partners and investors ahead of potential commercial rollout.
“Hydrilyte solves one of the biggest challenges for the hydrogen industry – at scale,” said Mark Rheinlander, Carbon280’s founder and CEO. “Rather than transporting a highly flammable gas you are storing and transporting a safe, low-cost liquid that stores hydrogen under ambient conditions.”
The breakthrough comes as Australia’s hydrogen ambitions face growing headwinds. Recent weeks have seen a wave of major project abandonments despite $22.7 billion in government incentives, highlighting the urgent need for cost-effective solutions.
Traditional hydrogen storage requires expensive high-pressure tanks or cryogenic systems that keep the gas at minus 253 degrees Celsius. Carbon280’s multi-patented technology sidesteps these challenges entirely by creating a liquid that stores hydrogen at room temperature and normal atmospheric pressure.
“Low-cost and ease of handling will simplify and speed the implementation of hydrogen projects globally, enabling hydrogen use in applications and geographies with less sophisticated infrastructure,” Rheinlander explained.
Natural hydrogen potential
The technology offers particular promise for Australia’s emerging natural hydrogen sector. Unlike manufactured hydrogen, natural hydrogen occurs underground mixed with other gases that need separating – including helium, which is notoriously difficult to separate due to similar molecular sizes.
Hydrilyte enables separation and storage in a single step, potentially unlocking value from both hydrogen and helium for natural hydrogen developers.
“Natural hydrogen in combination with Hydrilyte will be gamechanging for the use of hydrogen across all industries, including energy, by slashing costs and simplifying handling,” Rheinlander said.
Perhaps most significantly, the hydrogen-containing Hydrilyte can use existing liquid fuel infrastructure including pipelines, tankers and ships. This eliminates the need for costly new transport systems that have derailed other hydrogen projects.
One of Australia’s first commercial green hydrogen projects was recently scrapped because transport costs made it unviable, underlining how crucial accessible infrastructure is for the industry’s success.
For Carbon280, the pilot plant launch represents a pivotal step toward de-risking hydrogen investments and accelerating sector growth in Australia. As the hydrogen industry recalibrates following recent setbacks, innovations like Hydrilyte may prove essential for turning ambitious government targets into commercial reality.
The breakthrough also highlights how Australian startups are leveraging advanced technology to tackle major industrial challenges, positioning the country as a potential leader in clean energy innovation.
For more information, visit www.carbon280.com
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