The Australian Renewable Energy Agency has allocated $2 million to Lochard Energy for an 18-month feasibility study in a bid to bolster Australia’s renewable energy capabilities and tackle the challenges of energy storage.
The study, set to take place in Victoria’s onshore Otway Basin, will explore large-scale hydrogen production and storage, marking a significant step forward in the nation’s transition to clean energy.
The H2RESTORE project, spearheaded by Lochard Energy, seeks to address the critical need for cost-effective and efficient energy storage solutions.
With renewable hydrogen emerging as a promising avenue for long-duration storage, the project aims to leverage excess energy from the National Electricity Market (NEM) to produce hydrogen through electrolysis and store it underground.
Darren Miller, CEO of ARENA, underscored the importance of overcoming the storage challenge for renewable hydrogen, emphasising its role in Australia’s journey towards achieving net-zero emissions.
He highlighted that resolving this issue is crucial for unlocking the full potential of renewable hydrogen as a viable energy storage option.
Building upon Lochard Energy’s expertise in energy security and reliability, particularly through its operation of the Iona Gas Storage Facility, the H2RESTORE project will explore repurposing existing underground gas storage reservoirs for hydrogen storage.
According to ARENA, this method not only shows potential for decreasing storage expenses but also allows for the storage of renewable hydrogen over longer periods, accommodating variations in energy demand throughout different seasons.
The feasibility study, which commenced earlier this year, aims to confirm the technical viability of storing hydrogen deep underground in porous rock formations, develop a concept design for a pilot facility, and planning for a potential commercial-scale hydrogen storage facility.
It follows a pre-feasibility study conducted in collaboration with CSIRO and Advisian in 2023, which laid the groundwork for the current phase.
Tim Jessen, CEO of Lochard Energy, expressed gratitude for ARENA’s support and emphasized the transformative potential of the H2RESTORE project in reshaping Australia’s energy landscape.
“This funding will enable us to do the necessary studies to progress a pilot facility demonstrating Lochard Energy’s capability to store hydrogen underground and provide support for the development of a large-scale commercial facility,” Jessen said.