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ARENA to support green hydrogen manufacturing project with $49M in funding

21 Sep, 2026
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The Australian Renewable Energy Agency (ARENA) will invest up to AU$49 million in funding to support green hydrogen technology company Hysata in establishing a commercial-scale eletrolyser manufacturing line.

The ARENA grant will help fund a AU$98 million project to the electrolyser manufacturing line at Port Kembla in New South Wales.

Initial output is targeted at 50 megawatts (MW) per annum, with the facility designed to scale up to 200 MW per annum through 24-hour operations as global demand expands.

Hysata’s capillary-fed electrolyser technology is engineered to produce renewable hydrogen at higher efficiency levels.

The technology aims to significantly reduce production costs, aiding the decarbonisation of heavy industries such as steelmaking, chemical processing, shipping, and transport.

Beyond facility construction, the project encompasses the deployment of early commercial megawatt-scale electrolyser systems to validate performance in real-world applications.

A key element involves local fabrication of essential components, including membranes, anodes, and cathodes, to strengthen Australia’s sovereign manufacturing capacity.

ARENA CEO Darren Miller pointed out the importance of advancing domestic renewable manufacturing to capture long-term economic value.

“Australia has world-class clean energy innovators, and Hysata is a great example of home-grown technology with the potential to compete globally,” Miller said.

“This project will help move Australian innovation from the lab into large-scale manufacturing, creating skilled jobs while strengthening Australia’s capability to produce critical clean energy technologies locally.”

The development is set to generate around 40 skilled roles across engineering, manufacturing, and technical disciplines in the Illawarra region. To support local workforce development, Hysata will partner with TAFE NSW Illawarra and the University of Wollongong to deliver targeted training, internships, and skill pathways.

Funded under the Future Made in Australia Innovation Fund, the facility marks a significant step towards commercialising home-grown renewable hardware on Australian soil.

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