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Australian govt grants Sparc Hydrogen A$2.7m for low-cost green hydrogen pilot

Green hydrogen sign

Photo by Bloomberg

4th July 2025

By: Marleny Arnoldi

Deputy Editor Online

     

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ASX-listed Sparc Technologies has been awarded A$2.7-million in grant funding from Australia’s Economic Accelerator (AEA) Innovate programme.

Sparc Technologies, together with iron-ore miner Fortescue and the University of Adelaide, has been developing patented photocatalytic water splitting reactor technology since 2022 through the Sparc Hydrogen partnership.

This grant follows the earlier award of A$470 511 in funding to the Sparc Hydrogen partnership under an AEA seed round in 2023.

The latest AEA grant followed a rigorous and competitive selection process, with Sparc Hydrogen’s application having been chosen from a large number of proposals nationally.

The grant underscores Sparc Hydrogen’s technological innovation and commercial potential, says Sparc Technologies MD Nick O’Loughlin.

The grant will support Sparc Hydrogen’s operation of a photocatalytic water splitting reactor pilot plant at the university’s Roseworthy Campus in South Australia, as well as other research and development activities.

The pilot plant is progressing on time and within budget, with commissioning anticipated later this month. Once operational, Sparc Hydrogen will test different reactor designs and photocatalyst materials under real world conditions to validate laboratory testing.

The cash grant covers a 24-month period and will be fully supported by matched financial and in-kind commitments from Sparc Hydrogen and its shareholders.

O’Loughlin says the company is proud to receive this significant grant from the federal government’s highly competitive AEA Innovate programme to accelerate development and commercialisation of Sparc Hydrogen’s novel green hydrogen production technology.

The AEA programme, which will run from 2023 to 2032, is backed by A$1.6-billion of investment from the Australian government. The programme is part of the Australian government’s University Research Commercialisation Action Plan, which aims to accelerate commercialisation of Australia’s world-leading research in the university sector.

O’Loughlin believes commercialisation of Sparc Hydrogen’s reactor technology can help drive Australia’s emerging green hydrogen industry, which is expected to be worth $1.4-trillion a year by 2050.

The potential for Sparc Hydrogen’s technology to produce both hydrogen and industrial heat unlocks more markets and revenue opportunities for the company and the country.

DIFFERENTIATED TECHNOLOGY

Sparc Hydrogen’s photocatalytic water splitting reactor technology sets it apart from conventional approaches in the production of green hydrogen.

The process removes the reliance on solar or wind farms as well as expensive electrolysers to produce green hydrogen from water.

This addresses a fundamental issue in the nascent green hydrogen industry – the cost of renewable electricity.

Sparc Hydrogen’s technology employs a photocatalyst and sunlight to produce green hydrogen directly from water, with the hydrogen then serving as a clean fuel or feedstock to decarbonise hard-to-abate industries.

Through the pilot plant, Sparc Hydrogen will test and demonstrate that photocatalysis does not use electricity to split water into hydrogen and oxygen; its low production cost benefits; how scalable and flexible concentrated solar infrastructure can produce industrial heat and hydrogen; and its ability to be used in offgrid and remote locations.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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