How 1414 Degrees Is Revolutionizing Industrial Heat and Hydrogen with New Grants
1414 Degrees has made significant strides in its industrial decarbonisation efforts, progressing its Heat-as-a-Service model and achieving a key milestone in its hydrogen technology development, supported by new government funding.
- Secured $0.492 million AEA Ignite grant for SiPHyR catalyst development
- Advanced Heat-as-a-Service (HaaS) commercial model with feasibility studies
- SiPHyR methane pyrolysis reactor achieved over 70% methane conversion
- Aurora Energy Precinct battery project reached final impact assessment stage
- Quarter-end cash balance of $1.922 million with ongoing operational spend
Industrial Decarbonisation in Focus
1414 Degrees Ltd (ASX, 14D) continues to carve out a promising path in the industrial decarbonisation landscape, leveraging its silicon-based energy storage and hydrogen production technologies. The June 2025 quarter saw the company sharpen its commercial focus, particularly around its Heat-as-a-Service (HaaS) offering, which aims to provide industrial customers with predictable, low-emission heat without the upfront capital costs of replacing existing boilers.
This approach is gaining traction amid rising gas prices and tightening carbon regulations, as well as increasing renewable electricity penetration that introduces market volatility. By offering a service contract model, 1414 Degrees positions itself as a long-term energy partner, helping industries transition to cleaner heat solutions while managing operational costs.
Progress on SiBox and Market Engagement
During the quarter, the company completed feasibility studies for a 10 MWh SiBox installation at a New South Wales manufacturing site, with financial modelling indicating potential emission reductions of up to 20% and cost savings compared to gas. This project could serve as a blueprint for broader gas displacement across multiple sites both domestically and internationally.
Beyond Australia, 1414 Degrees is actively engaging with industrial customers in Asia and Europe, as well as collaborating with regional electricity distributors to integrate its technology with renewable energy grids. These efforts underscore the growing commercial interest in HaaS as a practical solution to energy and emissions challenges.
SiPHyR Hydrogen Technology Advances
On the hydrogen front, the company's SiPHyR methane pyrolysis reactor achieved a significant milestone by converting over 70% of methane at 1100°C, demonstrating its capability to produce low-emission hydrogen alongside valuable solid carbon co-products. This ‘turquoise hydrogen’ approach offers a faster and potentially cheaper alternative to green or blue hydrogen, with the added advantage of utilizing existing gas pipeline infrastructure.
Supporting this progress, 1414 Degrees secured a $492,526 grant from Australia’s Economic Accelerator Ignite program to accelerate catalyst development, complementing an existing $2.5 million CRC-P grant. The technology holds particular promise for hard-to-abate sectors such as cement, steel, and alumina production, where low-carbon hydrogen and feedstocks are critical for decarbonisation.
Aurora Energy Precinct and Financial Position
The company also advanced its Aurora Energy Precinct project in South Australia, with the 140MW/280MWh grid-scale battery moving to the final impact assessment phase for grid connection. This milestone is crucial for unlocking the precinct’s long-term value as a renewable generation and storage hub.
Financially, 1414 Degrees ended the quarter with $1.922 million in cash, down $0.722 million from the previous period, reflecting ongoing investment in R&D and commercial development. Director fees accounted for $79,000 of payments during the quarter. The company’s cash runway is estimated at around five quarters based on current operating cash flows.
Looking Ahead
Looking forward, 1414 Degrees has set clear priorities, securing customer commitments for its HaaS contracts, advancing catalyst development for SiPHyR, and expanding its pipeline of commercial and demonstration projects. With proven technology platforms and growing market interest, the company is well-positioned to capitalize on the global imperative to decarbonise industrial processes.
Bottom Line?
1414 Degrees is building momentum with commercial traction and technology milestones, but execution on contracts and funding will be key to sustaining growth.
Questions in the middle?
- When will 1414 Degrees secure binding HaaS contracts with industrial customers?
- How quickly can SiPHyR catalyst development translate into commercial hydrogen production?
- What are the timelines and regulatory hurdles for the Aurora Energy Precinct grid connection?