Australia, Hydrogen, Projects, Renewables

Hydrogen park sparks change

On October 11, 2024, the first sod was turned for the Hydrogen Park Murray Valley (HyP Murray Valley), heralding the start of one of Australia’s largest renewable hydrogen projects.

Spearheaded by the Australian Gas Infrastructure Group (AGIG), the $65.4 million initiative represents a critical milestone in the nation’s transition to a sustainable, low-carbon energy future.

Located in the Albury-Wodonga region, this project will benefit regional industries, businesses, and households, marking significant progress in decarbonizing Australia’s energy networks.

At the heart of HyP Murray Valley lies a 10-megawatt hydrogen electrolyser.

Made by LONGi, this machine is capable of producing 500 tonnes of renewable hydrogen annually.

As one of the largest electrolysers on Australia’s east coast, it will displace natural gas in the Albury-Wodonga network by blending hydrogen at up to 10 per cent by volume.

This will serve 40,000 residential, commercial, and industrial customers, contributing to the broader decarbonisation of gas supplies.

By replacing traditional natural gas, the project aims to eliminate 3000 to 4000 tonnes of CO2 annually.

HyP Murray Valley is strategically located alongside North East Water’s West Wodonga Wastewater Treatment Plant, creating opportunities for resource synergy.

The project plan to use recycled water for hydrogen production, while channelling the oxygen by-products back into wastewater treatment processes.

This circular approach will help the community reduce waste and improve operational efficiency while benefiting the environment.

The project will generate 40–50 local jobs during construction, delivering a significant boost to the regional economy.

Additionally, the initiative underscores Albury-Wodonga’s role as a renewable energy hub, offering potential for future hydrogen refuelling stations along the Hume Highway and further decarbonisation efforts across Victoria and New South Wales.

The Australian Renewable Energy Agency (ARENA) initially awarded funding to AGIG for its Wodonga development in May 2021 after being a successful applicant to its Renewable Hydrogen Deployment Funding Round.

AGIG’s facility will initially supply renewable hydrogen for injection into the local natural gas distribution network.    

Up to 10 per cent hydrogen will be blended with natural gas to reduce local carbon emissions. Network owner Australian Gas Networks, part of AGIG, estimates there are more than 40,000 gas connections, serving around 85,000 people in Victoria and across the border in NSW.

The 10 per cent hydrogen blend will cut approximately 4000 tonnes of CO2 each year.

ARENA CEO Darren Miller said the project is exciting because it will reduce local emissions from day one of operation.

“It’s essential to scaling up Australia’s renewable hydrogen industry that we get these first-generation projects up and running,” he said.

“The lessons we learn here will help inform our hydrogen industry as it grows from its early stages to a pillar of the net zero economy.”

Miller said that the project would have the potential to supply additional markets as they move towards net zero.

“Reliable supply of renewable hydrogen in places like Wodonga is going to be needed as hydrogen plays as growing role in road freight,” he said.

The Victorian Government is supporting the project with $12.315 million through the Department of Energy, Environment and Climate Action (DEECA). Clean Energy Finance Corporation (CEFC) is providing additional financial backing.

Mars Petcare Australia will purchase Renewable Gas Guarantee of Origin certificates, generated by the project.

The Federal Government accreditation program, GreenPower, will match the energy use of Mars’ local pet food factory to the renewable hydrogen added to the local gas network.

AGIG CEO Craig de Laine further added that the gas infrastructure business is proud to work with both the Australian and Victorian Governments on this landmark project.

“The strong support received from both the Australian and Victorian Governments demonstrates the importance of renewable hydrogen to decarbonising energy across Australia,” he said.   

“We thank all our project partners and key stakeholders, including the Albury-Wodonga community for their contribution to the project to date.”

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