The Australian Government has announced $49 million in funding to support the expansion of Australian-made hydrogen electrolyser manufacturing at Port Kembla in the Illawarra region. The grant has been awarded to clean technology company Hysata through the Australian Renewable Energy Agency’s Future Made in Australia Innovation Fund.
The funding will support a broader $98 million commercial-scale manufacturing project, with Hysata providing an equal amount of private investment. The project is aimed at increasing domestic manufacturing capacity, strengthening clean energy supply chains and creating skilled jobs in regional Australia.
Hysata’s electrolyser technology is designed to produce renewable hydrogen by using electricity to split water into hydrogen and oxygen. The company says its proprietary technology can achieve an efficiency of around 95%, compared with approximately 65% to 75% for conventional electrolysers. Higher efficiency can reduce electricity consumption and contribute to lower production costs for green hydrogen.
The technology could support decarbonisation in industries where emissions are difficult to reduce, including steelmaking, heavy transport and fertiliser production. The Port Kembla project will initially establish a manufacturing line with an annual production capacity of 50 MW. The facility could later expand to 200 MW per year as international demand for hydrogen technologies grows.
The project is expected to create around 40 new jobs in engineering, technical and manufacturing roles. Hysata, which has recently reached 120 employees, is also working with TAFE NSW Illawarra and the University of Wollongong to develop training and skills pathways for the emerging clean energy manufacturing sector.
The company’s technology originated from research conducted at the University of Wollongong, highlighting the role of Australian research institutions in developing technologies for commercial deployment.
The manufacturing expansion is also expected to support local suppliers and businesses. Hysata currently spends between $20 million and $30 million each year with Australian suppliers, contributing to the development of a domestic manufacturing supply chain.
The wider project includes the deployment of early megawatt-scale commercial electrolyser systems, providing an opportunity to demonstrate the technology in larger applications.
Ministers Chris Bowen and Tim Ayres said the investment supports the Future Made in Australia agenda by helping move Australian research and innovation into commercial manufacturing. Government support for Hysata now exceeds $84 million in grants, along with $26 million in equity investment from the Clean Energy Finance Corporation.
The Port Kembla expansion adds to other clean energy manufacturing initiatives in the Illawarra, including projects involving BlueScope, Sicona and Gravitas, strengthening the region’s position in Australia’s emerging clean energy manufacturing sector.
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