Community
10 April, 2024
Hydrogen study gains support
LOCHARD Energy (Lochard) received funding for its feasibility study to assess the viability of its underground hydrogen storage project, H2RESTORE.
The study received $2 million in funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA’s Advancing Renewables Program, which complements a $4.3 million Lochard contribution.
The H2RESTORE Project aims to support the National Electricity Grid (NEM) by seasonally shifting energy and filling electricity supply gaps.
The ARENA funding will support Lochard to undertake an 18-month feasibility study to assess the technical and commercial viability of storing hydrogen underground in existing natural gas reservoirs in south west Victoria.
The H2RESTORE Project is focused on helping to solve the intermittency problem of renewable energy and is being designed to generate hydrogen by electrolysis using excess energy from the National Electricity Market – increasingly from renewable sources including wind and solar – and storing it underground.
The hydrogen can then be converted back into electricity to supply the market when demand is high and supply is low.
This seasonal shift in energy could help avoid overbuilding of renewables and thereby lessen the burden of the energy transition on regional and rural communities.
The funding from ARENA comes at a pivotal time in Australia's renewable energy landscape, as the nation continues to transition towards a low-carbon future.
The H2RESTORE project aligns with Victoria’s net zero goals, and has the potential to provide long-duration energy storage which could help enable a smoother transition away from coal and towards renewables by shifting energy from summer to winter, according to Lochard chief executive officer Timothy Jessen.
“We are thrilled to receive this support from ARENA, which recognises the potential of the H2RESTORE Project to transform the way energy is stored and utilised,” he said.
“This funding will enable us to undertake the necessary studies and potentially progress a pilot facility to demonstrate Lochard Energy’s capability to store hydrogen underground.
“Our H2RESTORE Project has the potential to not only seasonally shift large amounts of energy, but it could also help kick-start Victoria’s hydrogen economy and repurpose existing underground gas storage assets, by solving one of the key challenges of the hydrogen economy – large, cost effective and safe hydrogen storage.”
Mr Jessen said throughout the feasibility study, Lochard will be undertaking community and stakeholder engagement and consultation.
“The local community will be provided with information and can ask questions and seek further details about the project in the coming months,” he said.
“Lochard supports the Victorian and federal net zero targets and we are pursuing other project developments in this space, including our ER1 project to help provide energy reliability and our H2REFUEL initiative to help decarbonise heavy vehicle transport using renewable hydrogen.”
By providing deep energy storage, the H2RESTORE Project could help equip the electricity grid to handle seasonal variation in renewable energy generation and support a smoother transition away from coal-generation.
For more information about Lochard Energy and the H2RESTORE Project visit lochardenergy.com.au/our-projects/h2restore.