The Pilbara region of Western Australia is set to become home to one of the world’s largest renewable hydrogen plants after the Australian Renewable Energy Agency (ARENA) conditionally approved $47.5 million towards ENGIE’s renewable hydrogen and ammonia project near Karratha, in the northwest corner of the state, writes Greg King-Evans.
The $47.5 million grant has been conditionally approved through ARENA’s Renewable Hydrogen Deployment Funding Round, and the project is also receiving $2 million funding from the Western Australian Government’s Renewable Hydrogen Fund as part of its Renewable Hydrogen Strategy.
The $87 million Yuri project will be Australia’s first large-scale hydrogen plant, and it will feature a 10MW electrolyser to produce renewable hydrogen, an 18MW solar PV system to power the electrolyser, and a 8MW/5MWh lithium-ion battery for firming.
When complete, the plant will supply hydrogen and electricity to Yara Pilbara Fertilisers at its existing liquid ammonia facility (pictured above), and will be Australia’s largest electrolyser – capable of producing up to 640 tonnes of renewable hydrogen annually.
Yuri is a subsidiary of ENGIE Renewables Australia, and Japanese trade company Mitsui & Co has agreed to acquire a 28 per cent stake in it, meaning the hydrogen plant will be run as a joint venture company.
Building Australia’s first large-scale hydrogen plant is a significant development towards Australia becoming a major exporter of renewable hydrogen.
“Yuri is Australia’s first substantial renewable hydrogen project, and it is one of the largest so far in the world,” says ARENA CEO Darren Miller.
“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.
“It is also a huge export opportunity for Australia to provide clean energy and emissions-free materials to the rest of the world.
“This is going to be important if we are to achieve zero net emissions in the decades ahead.”
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 production is a very energy intensive process, producing about 500 million tonnes of carbon dioxide annually, which is around 1.8 per cent of global carbon dioxide emissions – similar in scale to the aviation industry.
It is mostly used to produce agricultural fertilisers, which is currently made with hydrogen derived from fossil fuels.
“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,” says Miller.
“This project will help us understand the opportunities and challenges for producing renewable hydrogen at scale, offering valuable insight into the technical complexities, economics and supply chain considerations for future commercial-scale hydrogen electrolyser projects in Australia.”
Yuri construction commences in October and will be completed in early 2024.