Australian renewable hydrogen technology company Hysata is set to establish a commercial-scale electrolyser manufacturing facility at Port Kembla, New South Wales, backed by up to $49 million in funding from the Australian Renewable Energy Agency (ARENA).
The $98 million project will initially establish a manufacturing line capable of producing 50 MW of electrolysers annually, with the facility designed to scale to 200 MW per yea r through 24-hour operations as market demand develops.
The project is intended to move Hysata’s Australian-developed capillary-fed electrolyser technology from research and development into commercial-scale manufacturing while establishing domestic production of key electrolyser components.
Port Kembla facility to manufacture 50 MW of electrolysers annually
The manufacturing facility will produce Hysata’s capillary-fed electrolyser technology, which was developed from research undertaken at the University of Wollongong.
Hysata says its technology is designed to improve the efficiency of renewable hydrogen production, with the potential to reduce production costs and support decarbonisation in sectors that are difficult to electrify directly.
The initial manufacturing capacity of 50 MW per year is planned to expand to 200 MW annually as demand increases, with round-the-clock operations providing the pathway for higher output.
The project will also include early commercial-scale deployments of Hysata’s electrolysers, allowing the company to progress from manufacturing into initial market applications.
Local production of electrolyser components
In addition to electrolyser assembly, the Port Kembla project will manufacture key components locally, including membranes, anodes and cathodes.
Hysata expects to spend between $20 million and $30 million ann ually with Australian suppliers, according to the project announcement. The planned procurement is intended to support the development of a regional clean-technology manufacturing ecosystem around the Port Kembla facility.
For Australia’s renewable hydrogen industry, domestic electrolyser manufacturing could also create a local supply base for equipment required to convert renewable electricity into hydrogen.
Technology developed from Australian research
Hysata’s electrolyser technology originated from research at the University of Wollongong and uses a capillary-fed design.
Electrolysers use electricity to split water into hydrogen and oxygen. When powered by renewable electricity, the process can produce renewable hydrogen without the direct carbon emissions associated with conventional fossil-fuel-based hydrogen production.
Hysata’s technology is being developed for applications including steelmaking, chemicals, shipping and heavy transport, where hydrogen may have a role in reducing emissions from processes that are difficult to decarbonise through direct electrification.
The source does not provide a specific efficiency figure or levelised hydrogen cost for the technology, so its commercial performance should not be inferred beyond the company’s stated objectives.
ARENA backs domestic clean-energy manufacturing
ARENA CEO Darren Miller said developing Australia’s domestic manufacturing capability for renewable energy technologies would be important to retaining economic value from the energy transition.
Miller described Hysata as an example of Australian-developed technology with potential for international competition and said the project would help move the technology from laboratory development towards large-scale manufacturing.
The ARENA funding is intended to support advanced electrolyser manufacturing in Australia while creating skilled employment and strengthening domestic capability in clean-energy technology production.
The Port Kembla project therefore combines technology commercialisation with manufacturing capacity, rather than focusing solely on hydrogen production.
Bioenergy Business Analysis
The Hysata project highlights the growing importance of electrolyser manufacturing capacity alongside renewable hydrogen production itself. Establishing a 50 MW annual production line, with a pathway to 200 MW, could give Australia a domestic equipment base as developers seek to scale renewable hydrogen projects.
The project also demonstrates the potential value of linking technology development with local component manufacturing and supplier networks. However, the eventual commercial impact will depend on demand for Hysata’s technology, successful deployment of the initial commercial systems and the company’s ability to scale manufacturing while maintaining performance and cost competitiveness. The source does not provide independent operating data or confirmed future customer vo
