An innovative energy storage solution

About the H2RESTORE Project 


This Project received funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA’s Advancing Renewables Program.

The views expressed herein are not necessarily the views of the Australian Government, and the Australian Government does not accept responsibility for any information or advice contained herein.

We are exploring opportunities to repurpose our existing reservoir assets into underground hydrogen storage to shift energy seasonally


The Australian energy market is transitioning to a low-carbon and renewable energy future. As more renewables enter the grid and coal-fired power plants retire, balancing supply and demand is increasingly complex. Solving the “intermittency” problem is key to enabling the continued uptake of renewable energy resources.

Shifting energy from times of high supply and low demand to times of low supply and high demand is critical to enabling the sufficient buildout of renewable energy whilst retaining high reliability.

Just as grid-scale batteries can shift energy within a day, underground hydrogen storage has the potential to shift energy within a year. For example, from a sunny and windy mild day in Spring to a cold, still Winter’s night. This seasonal ­­­shift in energy could help avoid the overbuilding of renewables and thereby lessen the burden of the energy transition on regional and rural communities.

The H2RESTORE Project has the potential to reduce the cost of the energy transition by using deep energy storage to optimise the scale of wind and solar generation and associated transmission, which in turn could help ease pressure on energy costs.

Quick Facts

  • Firming (security of supply) of the NEM is required due to coal-fired power station closures
  • It is expected that 5GW of coal generation will close by 2030 and a further 14 GW of coal generation may become uneconomic by 2030
  • The planned exit of coal-fired power stations mean there will be supply gaps, as the winter peak demand period is not aligned with the summer peak of renewable energy generation, which creates a need for energy storage solutions
  • Deep storage is required to seasonally shift excess renewable energy from summer to winter
  • As a result, Lochard are looking to develop currently under-utilised depleted gas fields and transition existing assets into underground hydrogen storage in the longer term
  • UHS can be achieved through repurposing depleted gas fields – where hydrogen can be stored in rock pores under an impermeable clay or salt layer
  • This allows for more efficient development and operation of hydrogen supply as existing infrastructure is already largely available on-site

  • This storage method has been shown to be technically feasible, but requires pilot testing by Lochard before development at a commercial scale

Our initial focus is to explore the use of hydrogen to firm the NEM, help to improve system resilience and help ease upward pressure on electricity prices.


Our subsequent focus is to provide hydrogen to PtX users to assist in the development of a regional hydrogen hub

Feasibility Study

Lochard will undertake an 18-month feasibility study which will involve studies to investigate the viability of storing hydrogen in depleted underground gas reservoirs and conduct engineering and early environmental studies.

The feasibility study will help progress the project to the next stage, which is the development of a small-scale pilot demonstration facility required ahead of potentially developing the project into a commercial scale operation by the early 2030s.

The feasibility study will investigate subsurface properties, concept design for the pilot facility, understand recycled water supply concept design, techno-economics, power connection studies, identify potential development partners, undertake extensive community engagement, regulatory engagement, environmental and cultural heritage due diligence.

The feasibility study will commence in early 2024 with objectives to:

    1. confirm technical feasibility of the Waarre sandstone underground storage reservoirs for hydrogen storage,
    2. develop a project concept design for the pilot facility, and
    3. progress planning, design and techno-economics for a potential commercial underground hydrogen storage facility.

During this time, Lochard will seek to gain further understanding of subsurface conditions and regulatory pathways, and undertake an extensive program of community and stakeholder [research and] engagement.


Download our H2RESTORE Project information sheet

To view and download more information on H2RESTORE, simply click on the link below.

H2RESTORE Project Fact Sheet February 2024

Contact Us

If you have any queries in relation to the H2RESTORE Project, please email us at [email protected] and an appropriate team member from our project team will contact you, or alternatively fill out the form below.




    Contact Us

    If you have any queries in relation to the H2RESTORE Project, please email us at [email protected] and an appropriate team member from our project team will contact you, or alternatively fill out the form below.