One of Australia’s largest renewable hydrogen plants is set to go ahead, with the Australian Gas Infrastructure Group (AGIG) reaching financial close on its Hydrogen Park Murray Valley development in Wodonga, Victoria.
The Australian Renewable Energy Agency (ARENA) has announced a $36.1 million commitment to AGIG for the 10MW electrolyser deployment.
The Hydrogen Park Murray Valley project will produce renewable hydrogen to initially be blended into the local natural gas distribution network, owned by Australian Gas Networks, part of AGIG.
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The facility will be located next to North East Water’s Wodonga Wastewater Treatment Plant. Once complete, the project will be the largest renewable hydrogen facility on the east coast and equal largest in Australia.
The renewable hydrogen produced will displace natural gas supplied to local customers and industry at blends of up to 10%, reducing carbon emissions with no change to amenity for gas users.
With more than 40,000 connections to the local gas network, the project will supply hydrogen to an estimated 85,000 people spanning the border of Victoria and New South Wales. At a blend of 10 per cent, the project is predicted to cut approximately 4,000 tonnes of CO2 each year.
Wodonga’s strategic location along a major road freight route also provides access to other end use markets, particularly in heavy vehicle transport.
The Victorian Government is supporting the project with $12.315 million through the Department of Energy, Environment and Climate Action (DEECA), with additional financial backing from the Clean Energy Finance Corporation (CEFC).
Mars Petcare Australia will purchase Renewable Gas Guarantee of Origin certificates, generated by the project and accredited by GreenPower, to match the gas use of their local pet food factory in Wodonga.
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Hydrogen Park Murray Valley is the second 10MW project supported by ARENA to reach financial close after the first, Engie’s Project Yuri in the Pilbara, achieved the milestone in September 2021. Both were funded as part of a $103 million competitive funding round for commercial scale hydrogen electrolyser projects.
AGIG CEO Craig de Laine said, “The strong support received from both the Australian and Victorian Governments demonstrates the importance of renewable hydrogen to decarbonising energy across Australia. We thank all our project partners and key stakeholders, including the Albury-Wodonga community for their contribution to the project to date.”
Construction on the project is due to commence in 2023, with the site operational by 2025.
