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 10MW electrolyser to produce renewable hydrogen, 18MW solar PV system to power the electrolyser and 8MW/5MWh 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.
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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.
Ammonia production is a highly energy intensive process, producing about 500 million tonnes of carbon dioxide as a result, which is around 1.8 per cent of global carbon dioxide emissions, similar in scale to the aviation industry.
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,” he said.
“The Yuri project is exciting because fertiliser production is a significant existing end use for hydrogen and one where we can make an immediate difference because we are replacing fossil fuels with renewable energy to make hydrogen.”
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“As the largest hydrogen project of its kind so far in Australia and one of the largest in the world, this project will help us understand the opportunities and challenges for producing renewable hydrogen at scale, offering valuable insights into the technical complexities, economics and supply chain considerations for future commercial-scale hydrogen electrolyser projects in Australia.”
The Yuri hydrogen project is expected to reach financial close by the end of September. Construction will commence in the Pilbara in October and be completed by early 2024.
