One of the world’s largest renewable hydrogen plants is due to be built in the Pilbara, after the Australian Renewable Energy Agency (ARENA) conditionally approved $47.5 million towards ENGIE’s renewable hydrogen and ammonia project near Karratha in Western Australia.
The $87 million Yuri project includes a 10 megawatt (MW) electrolyser to produce renewable hydrogen, 18 MW solar PV system to power the electrolyser and 8 MW / 5 MWh lithium-ion battery for firming, and will supply hydrogen and electricity to Yara Pilbara Fertilisers at its neighbouring liquid ammonia facility.
Once completed, the project will be Australia’s largest electrolyser, capable of producing up to 640 tonnes of renewable hydrogen per year.
In addition to ARENA funding, the project Is receiving $2 million from the Western Australian Government’s Renewable Hydrogen Fund as part of the WA’s Renewable Hydrogen Strategy.
The project is expected to reach financial close by the end of this month. Construction will commence in October and be completed by early 2024.
ENGIE Renewables Australia Pty Ltd (ENGIE) has formed a subsidiary called Yuri to develop the project. Mitsui & Co. Ltd (Mitsui) has agreed to acquire a 28 per cent stake in the Yuri subsidiary subject to satisfaction of certain conditions under its investment agreement. ENGIE and Mitsui intend to operate the Yuri project through this joint venture company.
Electrolysers can utilise renewable electricity to split water into hydrogen and oxygen. The renewable hydrogen produced can be used as a feedstock for chemicals such as ammonia, combusted for heat or electricity generation, or used as a zero emissions transport fuel. Ammonia is most commonly used to produce agricultural fertilisers which is currently made using hydrogen derived from fossil fuels.
ARENA CEO Darren Miller said building the first hydrogen projects at scale is an important step in Australia’s journey to become a major exporter of renewable hydrogen.
“The Yuri project is Australia’s first really substantial renewable hydrogen project, and it is one of the largest so far in the world,” Miller said.
“Whether it’s for decarbonising fertiliser production, or for use as a zero emissions fuel, renewable hydrogen will be vital to reducing emissions in so called hard-to-abate sectors.”