Perth-based materials engineering company Carbon280, developer of next-generation hydrogen separation, storage and transport solutions, has signed a Memorandum of Understanding (MOU) with natural hydrogen explorer H2EX.
The agreement marks a critical milestone for the emerging natural hydrogen sector, aligning two Australian innovators to accelerate low-cost, low-carbon hydrogen supply chains.
The partnership follows Carbon280’s presentation of its Hydrilyte technology at the Australian Natural Hydrogen Conference, where the company showcased mixed-gas test results representative of natural hydrogen.
The testing confirmed Hydrilyte’s ability to separate hydrogen from helium and other gases while simultaneously storing it safely for transport — all within a single, integrated step.
Hydrilyte is a proprietary low-cost system that suspends a metal-hydride powder in mineral oil, enabling hydrogen to be captured, stored, and moved at ambient temperature as a stable bulk solid.
By combining gas separation and storage in one process, the system directly addresses one of the key challenges for natural hydrogen development: how to move hydrogen safely, cheaply, and efficiently from the wellhead to end users.
Momentum is rapidly building in natural hydrogen exploration.
The US Geological Survey recently released its first national map of potential geologic hydrogen resources, estimating vast untapped reserves worldwide.
As global drilling activity expands through 2026, scalable infrastructure for separation and logistics is becoming essential.
“One of the biggest bottlenecks for natural hydrogen is how to separate, transport and store it safely,” said Mark Hanna, Founder and CEO of H2EX.
“As H2EX progresses from exploration to production, we need a solution that can efficiently separate hydrogen from other gases and deliver it to customers.
“That’s why Hydrilyte is so important — it brings separation and logistics together in a single, elegant step.”
Developing hydrogen storage solutions that can enable co-location of production, storage, and industrial applications is increasingly seen as critical to lowering costs and emissions.
Carbon280’s approach, designed for ambient conditions without the need for high-pressure or cryogenic systems, addresses the cost and complexity barriers that have limited hydrogen’s widespread use.
“Natural hydrogen developers are targeting production costs of US$1–2/kg,” said Mark Rheinlander, Founder and CEO of Carbon280.
“Our goal is to keep separation, storage and release under US$1/kg at scale. When you combine natural hydrogen’s cost advantage with Hydrilyte’s simplicity and safety, you have a pathway to hydrogen that is globally competitive, low-carbon and ready for real-world industrial use.”
Carbon280 has completed and commissioned its Hydrilyte pilot plant and dedicated laboratory in Kwinana, Western Australia.
The facilities recently demonstrated successful helium–hydrogen separation, confirming the readiness of the system for scale-up.
The company is now converting the pilot system to continuous operation — a crucial step toward commercial deployment and large-scale processing of natural hydrogen streams.
To accelerate the next stage, Carbon280 has launched a seed funding round, expected to close in February 2026.
The investment will support optimisation of the continuous-flow process, expanded mixed-gas testing, and preparation for early pre-commercial field trials.
By combining separation, storage, and safety in a single robust platform, Carbon280 aims to create what it calls a “low-carbon, safe and economically compelling pathway to natural hydrogen”, positioning Australia as a global leader in hydrogen storage innovation.
