Business Ready Fund

HAMR Energy

Project summary:

The study explored the feasibility of producing methanol in Victoria using waste that would otherwise go to landfill and renewable hydrogen.

The project aimed to explore the viability of restarting Australia’s only methanol plant, located in Victoria, using sustainable feedstocks such as renewable hydrogen.

The project also investigated methanol’s potential as an emerging alternative fuel for hard-to-decarbonise sectors like shipping and aviation.

• Location: Laverton North
• Grant funding: $57,173
• Project completed: February 2023

Key findings

• Producing methanol from waste or biomass with renewable hydrogen is technically feasible.
• Renewable methanol derived from waste or biomass with renewable hydrogen is currently more costly compared with traditional methanol.
• The study identified a growing demand for renewable methanol, driven by its use as a clean fuel alternative for shipping.
• Establishing a renewable methanol industry in Victoria is projected to create jobs, enhance energy security, and offer downstream manufacturing opportunities.

Australian Engineering Solutions Pty Ltd

An economic, commercial and technical study - and prototype assessment -  to determine the feasibility of using renewable hydrogen in place of natural gas in new or existing cremation burners. As part of the project, hydrogen was successfully blended (30% by volume) into a cremation burner prototype.

• Location: North Geelong
• Funding awarded: $100,000
• Project completed: May 2023

Key findings

• The study confirmed the successful blending of hydrogen and natural gas for combustion in a cremation burner prototype, showcasing its potential as a viable alternative fuel source for high heat applications.
• This included demonstrating flame stability and minimised heat reduction as well as considering key blending complexities such as flow characteristics, Wobbe index and flame profile.

Goulburn Valley Water

The study investigated renewable hydrogen demand across the Greater Shepparton Region and determined the scale of opportunity available.

Goulburn Valley Water and its consortium of project proponents (manufacturing, industrial, agrifood, transportation, local government, energy and water utilities) quantified the costs, amounts of fossil fuels that could be replaced and potential carbon abatement. This investigation was part of the 'Embedding Regional Resilience White Paper'.

The paper identified potential pathways to embed the circular economy into the Goulburn Valley region. In particular, the paper considered the impact the emerging hydrogen economy may have on how circular economy principles could proceed in the region.

• Location: Shepparton
• Funding awarded: $85,000
• Project completed: May 2023

Key findings

• Based on the sample of the Greater Shepparton project proponents, there is the potential demand of up to 11,000 tonnes of hydrogen per year. This could lead to an 80% reduction in scope 1 and 2 emissions and serve as the foundation for establishing a renewable hydrogen ecosystem.
• Approximately 100 MW of renewable energy will be required to produce 11,000 tonnes of hydrogen to meet the proponents’ potential hydrogen demand.
• Prominent use-cases for renewable hydrogen include the production of green ammonia for agricultural products, heavy transport (trucks and mine haul fleets), production of ammonia or methanol for marine fuel, and process heat for specific industrial gaseous fuel users such as green steel or green concrete.
• Project proponents demonstrated an informed approach to electrification and energy efficiency as decarbonisation options. They expressed interest in additional solutions, including biofuels, hydrogen, and circular economy approaches.
• Various hydrogen technology pathways were identified at different stages of maturity. Materials handling hydrogen fuel cell forklifts were considered the most competitive, while network blending and stationary hydrogen fuel cells were regarded as less mature.
• Establishing a renewable hydrogen ecosystem in the Goulburn Valley Region requires consideration of how to incentivise hydrogen uptake as commercial and technological readiness advances.

Greater Western Water

The study focused on a renewable hydrogen demand analysis for the Bacchus Marsh area, utilising data from key industry partners.

The study concluded that the Bacchus Marsh Recycled Water Plant (BMRWP) has the potential to generate renewable hydrogen for emerging end-use customers and that the displacement of diesel achieves moderately more emissions reduction than natural gas substitution (per unit of hydrogen).

The report also highlighted that the true decarbonisation value comes from harder-to-abate use cases including heavy transport.

• Location: Parwan
• Funding awarded: $60,000
• Project completion: June 2023

Key findings

• On the supply side, ensuring cost-effective and efficient power supply is important to improving the levelised cost of hydrogen.
  Hydrogen's attractiveness as a decarbonisation pathway is influenced by the viability of alternative decarbonisation technologies for each use case.
• Potential hydrogen demand in Bacchus Marsh could range from 460 to 900 tonnes per annum, with demand primarily driven by natural gas substitution in the manufacturing sector and the adoption of hydrogen for refuelling heavy transport and forklifts.
• There is likely suitable land and water available in the region to support an initial electrolysis plant to produce renewable hydrogen to meet the projected demand.

Electromotiv Pty Ltd

This feasibility study investigated hydrogen buses and hydrogen refuelling infrastructure in bus depots in Victoria for long range routes.

Research investigated the safety, cost and practicality of renewable hydrogen technology as well as issues to be considered for long-range hydrogen bus rollout.

• Location: Dandenong
• Funding awarded: $150,000
• Project completed: November 2022

Key findings

• Currently, in-depot hydrogen refuelling dispensers to support fuel cell electric coaches are not financially feasible compared with incumbent diesel technology.
• With appropriate planning and regulatory oversight, in-depot refuelling can offer safe and reliable refuelling solutions for fuel cell electric coaches.
• While international standards provide guidelines, the unique conditions in Victoria may require the development of a tailored standardisation system.

RMIT University

A detailed site assessment and feasibility modelling tested the viability of transitioning from natural gas to renewable hydrogen for the RMIT City Precinct campus. Hydrogen was modelled to be generated onsite using an electrolysis process.

The outcome indicated that most natural gas appliances on site would need to be replaced to run on hydrogen blends above 10% by volume.

• Location: Melbourne City
• Funding awarded: $44,390
• Project completion: October 2022

Key findings

• The majority of existing natural gas appliances, including co-generation engines, would require replacement to burn hydrogen blends exceeding 10% by volume. However, some appliances may only require modifications to allow them to run on 100% hydrogen.
• Transitioning to 100% hydrogen at the time of publishing would have involved significant capital expenditure and increased operating costs compared with the business-as-usual baseline.

Blackmores Limited

This study looked at renewable hydrogen being used as an alternative fuel source to natural gas for onsite thermal processes that were unable to be electrified.

• Location: Braeside
• Funding awarded: $37,102
• Project completion: February 2023

Key findings

• Site-specific estimates indicated that the cost of producing renewable hydrogen on site is currently not price-competitive.
• Existing equipment was found to be compatible with blends of up to 10% by volume hydrogen with minor tuning. However, onsite gas equipment would need to be upgraded to accommodate 100% hydrogen. Onsite electrolysis would also require upgrades to electrical capacity of the facility.
• Electrification of natural gas thermal systems was the preferred pathway in the short term to meet Blackmore’s 2030 emissions reduction goals.
• Hydrogen steam boilers and dehumidifiers will be reinvestigated in 2026 when the supply of hydrogen may be more consistent and competitive.

Monash University

Monash University, alongside project partners ENGIE Impact and Nikkiso Cryoquip Australia, led a feasibility study to model key offtake applications suitable for using green hydrogen from a potential Victorian Renewable Liquid Hydrogen Supply Hub within the Monash University Precinct.

The study evaluated the suitability of liquid hydrogen for various applications, including mobility, gas blending, heat, power, and as a commodity.

• Location: Clayton
• Funding awarded: $75,000
• Project completed: August 2022

Key findings

• The off-taker assessment section of the study considered the suitability of liquid hydrogen from the Hydrogen Supply Hub across a range of applications. Key off-take applications suitable for procuring renewable liquid hydrogen from the Supply Hub at Monash University include:
  • Gas grid injection
  • Forklifts
  • Waste and concrete trucks
  • Regional trains
  • Public transport buses
  • Long-haul trucks
  • Co-location of the supply hub with renewable energy production could lower the cost of hydrogen through reduced network tariff exposure.
  • Based upon a set of screening criteria such as commercial and technical feasibility a range of applications such as gas grid injection, forklifts, waste trucks, concrete trucks, long-haul trucks, regional trains and buses were shortlisted attributing to a total potential demand of 5 tonnes of liquid hydrogen per day.
  • The levelised cost of liquid hydrogen at the Supply Hub could be in the range of $13.9-15.3/kg H2. Approximately 60% of this cost is attributable to the cost of the electricity supply.
  • Transportation and distribution costs could add up to $8/kg, which is based on assumptions for the demand locations and the level of off-take.