Pilbara hydrogen plant backed

CANBERRA: Australia’s biggest renewable hydrogen project will go ahead in the Pilbara, with support from the federal and state governments.

The Australian Renewable Energy Agency (Arena) yesterday announced a grant of $A47.5 million ($NZ8.2 million) towards French energy company ENGIE’s green hydrogen and ammonia project near Karratha, in Western Australia.

Minister for Climate Change and Energy Chris Bowen said the project would help Australia become 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,’’ he said.

Arena boss Darren Miller said the plant could make an immediate difference, because fossil fuels would be replaced by renewable energy to make hydrogen.

‘‘It is also a huge export opportunity for Australia to provide clean energy and emissionsfree materials to the rest of the world,’’ he said.

The $87.1 million Yuri project includes a 10MW electrolyser to produce renewable hydrogen, powered by solar and lithiumion batteries for energy storage, and will be one of the world’s largest.

The largest electrolyser now operating in Australia is the 1.25MW hydrogen plant in Adelaide’s Tonsley Park.

Suppling hydrogen and electricity to Yara Pilbara Fertilisers at its neighbouring liquid ammonia facility, the project will produce up to 640 tonnes of renewable hydrogen per year.

The project also received seed funding of $A2 million from the WA government two years ago as the state looks to be a global hub for hydrogen.

Electrolysers use renewable electricity to split water into hydrogen and oxygen.

The renewable hydrogen produced can be used for electricity generation, transport fuel or as a feedstock for ammonia.

Ammonia is most commonly used to produce agricultural fertilisers, at present made using hydrogen derived from fossil fuels.

Construction of the Yuri plant will begin next month and is due to be completed by early 2024. — AAP