Firstly, thank you for your patience as it has been some time since our last newsletter. While there has been much happening, we wanted to publish both under the new format.
New Visual Explainer
On the new website (and our Linkedin page) you will find a new animation designed to make it easier to explain how HERO® works, its uses, and why it is superior to burning hydrogen to release its energy. We aimed to get some of the complex science into an easily understandable package – we hope you like it.
New Sustainability Report
Along with this new website, animation, and newsletter, we are launching our third annual Sustainability Report. Critically, while some jurisdictions have been marching back and easing their ESG obligations, Star Scientific has chosen to maintain our alignment with the EU Taxonomy, as we are happy to measure ourselves against the strictest standards. Indeed, this discipline has allowed one our investor’s investment vehicle to achieve the “Article 9” (deepest green) qualification under the E.U. rules.
On the Shop Floor
As noted in the Sustainability Report, there have been new and exciting developments on the shop floor as well – which we are finally able to tell you about. As we evolve from one-off pilots to mass manufacture, we needed to find a way to coat the HERO® catalyst to the substrate without the use of potentially dangerous and toxic chemical baths. The technique needed to be simple, continuous and, in time, automated.
Enter “sputtering.” Sputtering is a technique borrowed from currency (coin) production and involves spraying an element on to a host target. Experimentation with copper proved successful and from there we moved on to the HERO® catalyst, with very promising results. A bonus is that sputtered targets require a much thinner spread than our previous experimental units, meaning we require less material for the same result, which is good for our ESG commitments. It is also important as we explore other uses for the catalytic properties of HERO®.
Another important part of the mass-production and commercial operation of HERO® is automating the process. We have made excellent progress here as well with the target being “push button” operation of the HERO® systems.
Market Remains Solid
Negative press about the slow development of the hydrogen sector continued into 2026, particularly in our home country of Australia.
The reality, however, is different. The market fundamentals for hydrogen remains the same, indeed they have solidified due to the energy shock delivered by the war in the Middle East. As we do annually, we attended the World Hydrogen Summit in Rotterdam, as part of the Australian delegation and visited Singapore on our return, where we held discussions with the Singapore Government.
While Star Scientific has been saying this for years, there is a growing realisation that for hydrogen to work – indeed for it dominate – the supply chains need to be as short and as efficient as possible, removing wastage, cost, and geo-political risks. As we have been saying – the “perfect” supply chain is to make it, store it and use it onsite. It has been interesting attending these conferences to hear how many delegates are independently saying the same thing, either on-stage or in private conversation. “Bringing the off taker to the hydrogen” is becoming a common theme.
Further, when Star first attended these conferences, we were the only company discussing process heat, while everyone else was discussing energy and ammonia. Now multiple companies are focussing on heat. This is because the market is defining the true demand as hard to electrify processes, such as heat generation. So, notwithstanding the gloom in some sectors, the times suit technologies such as HERO®.
The European Union has recognised this “true” demand for hydrogen and constraints in supply by moving to relax the rules around the definition of “green” hydrogen (or “Renewable Fuel of Non-Biological Origin, RFNBO). Transport is becoming a major driver of their thinking.
As we discovered during the Summit and a pre-conference trip to Schiphol Airport Amsterdam, organised by Austrade, Europe is heavily focussed on SAF – Sustainable Aviation Fuel, in which hydrogen will play a significant role.
Another major driver of hydrogen demand is the confidence shown by the automotive sector, especially the collaboration of BMW and Toyota, which will see the next generation of FCEVs launched globally in 2028.
Local Activities
As we do every year, we again sponsored the Rotary Schools Science Challenge along with our good friends the University of Newcastle and the New South Wales Government’s Office of the Chief Scientist. The Challenge, again at St Edward’s College East Gosford, was keenly contested by over 370 students from 16 schools.
As well as helping to inspire the students to consider careers in science and engineering, we were able to chat with local members of Parliament, Gordon Reid (Federal) and Adam Crouch and Liesl Tesch (State) as we joined them in judging the famous “bridge challenge”.
We were delighted to be present at the Open Day of the Central Coast Food Manufacturing Innovation Hub, an outstanding facility next to the University of Newcastle Ourimbah campus and just near our Berkeley Vale facility. The hub, which was partly funded by the Australian Government, was conceived and driven by Central Coast Industry Connect (of which we are a member) and their unstoppable and visionary leader, Frank Sammut (pictured). It was great to mingle with many of the food industry leaders in our region, including our pilot partners.
