An Australian entrepreneur is planning to create the cheapest hydrogen in the world by eliminating bubbles.

Paul Barrett, the Dublin-born chief executive of the Australian green energy firm Hysata, says his company can produce a kilo of hydrogen using 20% less electricity than conventional methods. This is achieved by using a special material which sits in the water and alters the process of electrolysis. The material was invented by researchers at the University of Wollongong in the state of New South Wales.

Barrett explains that in a conventional electrolyser, bubbles in the water can be clingy and stick to the electrodes, clogging up the process and leading to energy loss. By using a sponge-like material between the electrodes, Hysata eliminates those troublesome bubbles.

“It is not unlike your kitchen sponge in terms of what it does. It is just a lot thinner,” says Mr Barrett.

“It’s pretty easy to manufacture at a super low cost,” he adds.

Many see hydrogen as the answer to cutting carbon dioxide emissions, particularly in heavy industry like steelmaking and chemical production. However, cost and efficiency have been major hurdles for the hydrogen sector.

Hysata has recently raised US$111m (£87m) in investment to beef up its production.