LINE Hydrogen raises more than $900,000 in two days for Tassie green hydrogen plant
Jun 4, 2022 | The Australian
A Brisbane-based hydrogen energy startup is seeking to raise $2 million in crowd funds from Australians looking to take an active economic role in Australia’s green energy future.
Line Hydrogen wants to replace the more than 80 million litres of diesel Australians consumed daily in 2021 with green hydrogen. To do this the startup must become one of Australia’s early commercial scale green hydrogen producers for domestic diesel replacement.
Line Hydrogen is launching its inaugural $100 million green hydrogen project in the growing hub of Bell Bay in Tasmania’s north. The aim of the project is to produce 1,500 kg of green hydrogen daily for offtake by heavy haulage transport, particularly in the mining industry.
The company is also planning a $200 million project in Southern Queensland’s Toowoomba.
In April 2022, Line Hydrogen partnered with Victoria-based Climate Capital with plans to source the renewable energy necessary for hydrogen electrolysis from Climate Capital’s planned 5 MW ground-mounted solar farm in George Town, Tasmania.
According to founder and chairman Brendan James, the reason Line Hydrogen is seeking crowdfunded investment rather than the traditional institutional investment is to let community investors to get in on the ground floor as the hydrogen market takes off.
Shane Bartel, CEO, Climate Capital (left) with Brendan James, Founder and Executive Chairman, Line Hydrogen (right)
Image: Line Hydrogen
Why now?
Troubled by the over-dependence on diesel in industry, particularly resulting from poor grid access in rural areas, James says Line Hydrogen was started as a solution to “make processing projects sustainable in a climate changing world, and protect ourselves from global oil shocks going forward.”
In a webinar with Birchal in May 2022, James recalled starting the company at the same time as Russia annexed Crimea, and a resultant oil crisis ensued. Seven years later, the world is in the grip of another energy crisis due to Russian aggression against Ukraine, and global energy prices have skyrocketed for any nation with oil and gas dependency.
Perhaps the crucial change in those seven years has been the continuing decline in the cost of renewables. James described co-location of green hydrogen production plants as strategically integral.
“The project will be located on 10 ha of land owned by Climate Capital for up to 7.9 MW of behind-the-meter DC power. Climate Capital also have an option over an adjacent 30 ha that will allow the project to scale up to 40 MW in coming years.
Aerial photo of the Port of Bell Bay and Bell Bay industrial precinct, May 2021
Image: TasPorts
Government support
Line Hydrogen has already received the support of the new federal Labor government, which has pledged $5 million in funding as part of its Tasmanian funding initiatives.
On May 7, now Prime Minister Anthony Albanese said hydrogen has “enormous potential, and over time Line could build at least five hydrogen refuelling stations in Tasmania, creating jobs right across the state.”
“We need to take action now,” says James. “The new government has made it clear that Australian hydrogen should be produced by Australian companies for all Australians, and now is the time for all Australians to have a say in our green future.”
Crowdfunding campaign
Line Hydrogen is welcoming Australians to support the company with investments starting at $250. The company has already received expressions of interest in recents weeks from over 1,000 people.
“Our mission is to be Australia’s leading new energy producer,” continued James, “integrating both the production and end-use market demand by delivering near-term commercial-scale green hydrogen. We aim to achieve these by providing cost-competitive hydrogen supply, while facilitating and engineering end-use market demand.”
The crowdfunding campaign has already received funds from 419 investors totalling $998,910.
Line Hydrogen is targeting full production by mid-2023.
Line Hydrogen’s crowdfunding campaign went live on Birchal here.