Australian hydrogen producer Hazer Group has been awarded more than $9m from ARENA for its Hazer Process Commercial Demonstration Project in Western Australia.
The project will construct a 100 tonnes per annum low emission hydrogen production facility at the Woodman Point Waste-to-Water Treatment Plant in Munster that will demonstrate Hazer’s hydrogen production technology which converts biogas from sewage treatment into hydrogen and graphite.
The hydrogen produced will be fuel cell grade capable of being used as a low emission transport fuel.
Under the funding agreement, Hazer said it will be eligible to call down up to $7.9m of funding in three tranches during the capital construction phase of the project subject to meeting key design, contracting, construction and commissioning milestones, with up to a further $1.5m available to be called down in three annual tranches during the operational phase of the project.
Funding under this agreement remains contingent on Hazer satisfying certain conditions precedent, in a form acceptable to ARENA, including completion of binding Biogas Supply and Hydrogen Offtake Agreements, and demonstrating financial capacity to complete of the project.
At each funding milestone, Hazer is required to submit a Milestone Report demonstrating that the company has met the operational and technical requirements of that milestone and demonstrating the ongoing capacity to fund and execute the project.
Hazer is continuing to maintain its target project schedule to achieve project commissioning in the first quarter of 2021.