Lara Biomass Pyrolysis Hydrogen-Electricity Congeneration

Backed by Chinese tech partners and an AUD 45.9 million investment from Hubei HuaSheng Real Estate, the project targets 145,500 tons of annual CO₂ reductions and a 27% reurn on investment. Pending EPA approval, construction began in 2023, with operations slated for 2024

Technology & Innovation

The process involves the conversion of biomass waste into hydrogen-rich syngas through pyrolysis, concurrently generating electricity. This innovative technology achieves a hydrogen content of 40–60% in the syngas, significantly reducing hydrogen production costs to AUD 3.03 per kilogram.

Current outputs include 15 tons of hydrogen per day, primarily for export to markets such as China and Japan, and 3 MW of electricity per day, which is distributed through local microgrids.

Plans for future scale-up aim to increase biomass processing capacity to 1,200 tons per day, resulting in the production of 60 tons of hydrogen and 30 MW of electricity daily.

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Environmental & Economic Benefits

Our project offers significant environmental and economic benefits. Environmentally, it contributes to a reduction of approximately 145,500 tons of CO₂ emissions annually. Economically, the financial model demonstrates strong viability, with projected annual revenue of AUD 51 million and a robust profit margin of 60%. The internal rate of return (IRR) is estimated at 27% even without government subsidies, highlighting its financial attractiveness. Strategically, the project is positioned to capitalize on the growing demand for green hydrogen in key Asian markets.

Partnerships & Collaboration

The project is supported by a robust network of strategic partnerships. The lead partner, Hubei Huasheng Real Estate, has committed AUD 45.9 million in funding. Technical expertise is provided by Nanjing Forestry University, offering proprietary biomass gasification technology; the Guangxi Academy of Sciences, contributing to research and development; and Guangxi Shanshan Technology, responsible for supplying specialized equipment.

Funding Breakdown

The project’s funding structure includes contributions from both the Australian Renewable Energy Agency (ARENA) and project partners. Each party will contribute equally across key categories: AUD 27 million each for equipment, AUD 13.5 million each for contractors, and AUD 3.6 million each for consultants. This results in a total investment of AUD 44.1 million from ARENA and AUD 45.9 million from project partners, ensuring balanced financial commitment and resource alignment.