Green hydrogen is a must-have for reaching net zero emissions .

At IP Group, we are strong believers that the world needs to get to net zero emissions well ahead of 2050, and that new technology solutions and capabilities will be essential to achieving this ambitious goal.

Energy from renewable sources will be at the heart of achieving this goal, primarily through rapid deployment of wind and solar generation capacity. But the solar and wind energy resources are not always located close to the sources of energy demand, and at the same time there are many emissions-heavy industrial processes such as steel making, cement and plastics that are not amenable to electrification.

Green hydrogen, produced from renewable electricity and water, is an energy vector that can be used to transport renewable electrons to where it is needed, and as a feedstock to industrial processes. It is a core part of the pathway to net zero for many heavy industries, and at the heart of large-scale plans to export renewable energy to supply renewables-poor regions such as Japan and Korea.

Global demand for hydrogen is forecast to increase by a factor of 3.3 by 2050, with growth coming from a wide range of sectors, led by power generation, aviation and heavy industry, according to a recent report from S&P Global Commodities Insights. However, in order for green hydrogen to be viable economically, the cost of production needs to reduce significantly from approximately $6-8/kg today, to below $2/kg.

Reducing the production cost will require significant technological advances. We can’t just rely on economies of scale, which will not get us close to the cost levels needed.

Existing electrolysers are complex and expensive and, at best, are around 75% efficient whereas Hysata’s solution delivers system efficiency of 95% - “a giant leap in performance against incumbent technologies”. The efficiency improvement offers a double benefit – a 20% improvement in efficiency means more hydrogen produced per unit of renewable energy input, and at the same an 80% reduction in inefficiency, which means less requirement for expensive cooling equipment and less parasitic energy load to power this equipment.

Hysata’s unique capillary fed electrolyser technology promises an efficiency gain in the production of green hydrogen that is already running ahead of the 2050 target published by the International Renewable Energy Agency. Hysata is working to bring the cost of green hydrogen production to U$2/kg and below; a critical milestone below which green hydrogen becomes cost-competitive with grey hydrogen and other alternative feedstocks.

IP Group first came across the technology through Paul Barrett (former Head of Physical Sciences at IP Group Australia and now Hysata CEO). Paul had a long-standing relationship with Professor Gerry Swiegers from the University of Wollongong, with the two having worked together in the past on hydrogen technology. Recognising the technology’s commercial application, Paul led the team at IP Group that worked with Professor Swiegers and the university.

IP Group has worked with Hysata from the outset, providing funding and advising on business strategy. Our Australia team also worked closely with our cleantech team, Kiko Ventures, and we backed its Series A round in Summer 2022 with a total of A$19m from a total of $42.5M. Paul stepped across to become the Hysata CEO, while Michael Molinari, IP Group Australia’s Managing Director, sits on the Hysata Board as does Robert Trezona, Founding Partner, Kiko.

Hysata, which is currently building an electrolyser manufacturing facility for the global market, is creating skilled jobs and putting Australian hydrogen technology on the map. It is also attracting international interest and investment.

To learn more, about Hysata, there is a great video here or, for a deeper dive into why we’re so excited about the technology, read more from Kiko here.

“With its ultra-high system efficiency and low capex, Hysata will deliver the world’s lowest cost green hydrogen,” says Hysata CEO Paul Barrett.