The Albanese Government is ramping up renewable hydrogen production with $47.5 million in funding to develop a new hydrogen electrolyser in Karratha, Western Australia.
The Australian Renewable Energy Agency (ARENA) has advanced this important project to the next stage, and conditionally approved funding for a 10MW electrolyser that will be capable of producing up to 640 tonnes of renewable hydrogen each year.
This project will mark a step-change in scale towards Australia's vision of becoming a renewable energy superpower. The largest electrolyser currently operating in Australia is the 1.25MW hydrogen plant in Adelaide's Tonsley Park, South Australia.
ENGIE Renewables Australia Pty Ltd (ENGIE) and MIT Hydrogen Australia Pty Ltd (Mitsui & Co.) are working together on the venture, referred to as Yuri, to build and operate the electrolyser, as well as solar and battery storage at the Karratha site.
The total value of the Yuri project will be $87.1 million.
Minister for Climate Change and Energy Chris Bowen said hydrogen is a crucial part of Australia's energy future.
"The Albanese Government is committed to boosting the level of renewables and is thrilled to announce further progress on this electrolyser, which will be among the largest in the country." Minister Bowen said.
"This will help advance Australia towards becoming a world leader in hydrogen generation.
"As we move to a more renewable economy, hydrogen will become an increasingly important part of our energy mix, and will be important in supporting industrial and hard to abate sectors."
Western Australian Hydrogen Industry Minister Alannah MacTiernan welcomed the Final Investment Decision from ENGIE and Yara Pilbara Fertilisers for the Yuri Project.
"This is an important milestone for WA's growing renewable hydrogen industry," Minister MacTiernan said.
"Yara Pilbara Fertilisers is a world scale facility, and the project will demonstrate WA's ability to produce renewable hydrogen on an industrial scale.
"The State Government provided early critical support for this project with a $2 million grant awarded two years ago. This support helped the project attract further funding."
The project will supply renewable hydrogen and renewable electricity to Yara Pilbara Fertilisers Pty Ltd at its neighbouring liquid ammonia facility in Karratha.
It's expected to be complete in 2024.
Electrolysers can utilise renewable energy to split water molecules into hydrogen and oxygen. The renewable hydrogen produced can be used as a chemical feedstock to produce ammonia, which is commonly used to produce agricultural fertilisers.
