Three green hydrogen projects in Australia secure funding

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
A project from Engie in Western Australia will be paired with a solar park. Image: Engie.

The Australian Renewable Energy Agency (ARENA) has selected three commercial-scale green hydrogen projects that will share in AU$103 million (US$79.7 million) of funding to support their development.

The projects, set to be deployed in Victoria and Western Australia, will feature 10MW electrolysers, making them among the largest renewable hydrogen demonstrations in the world, ARENA said.

A project from French utility Engie will receive AU$42.5 million and be paired with a solar park to produce renewable hydrogen in a partnership with Yara Fertilisers at an ammonia facility in Western Australia.

Gas company ATCO has secured AU$28.7 million to produce hydrogen for gas blending at another site in Western Australia, while Australian Gas Networks will be provided with AU$32.1 million, also for a gas blending project, at its Murray Valley Hydrogen Park in Victoria.

The three beneficiaries must now satisfy several development conditions and achieve financial close before funding is released, with construction on the installations expected to commence in 2022.

ARENA CEO Darren Miller said the winning projects will help kickstart renewable hydrogen production in Australia at a large scale. “Our hydrogen industry in Australia is in its infancy, so the lessons learned from these three projects – and the entire funding round – will be important in driving our future hydrogen economy.”

Initially announced in 2019, ARENA’s H2 support programme shortlisted seven companies from 36 applicants last year and has since increased the funding envelope to back three projects, rather than the two initially planned.

Trade body the Clean Energy Council welcomed the additional funding and said green hydrogen “can be a critical component” of Australia’s low-emissions future. “The delivery of these projects is critical to the scale-up of Australia’s hydrogen industry. They’ll accelerate our knowledge and capability development and get us on the way to driving down the costs of renewable hydrogen production,” said the Clean Energy Council’s director of energy generation, Anna Freeman.

Australia’s federal government has set a target of producing green hydrogen at AU$2/kg, where it says it would be competitive against hydrogen produced from fossil fuels.

Recent developments in the country’s green hydrogen space have seen Canadian firm Amp Energy reveal plans for a AU$2 billion hub that will feature PV projects linked to a hydrogen facility, while South Australia has secured an emissions reduction agreement with the federal government for areas such as hydrogen.

As governments increase their support for green hydrogen and more projects are announced, research from both the International Renewable Energy Agency and IHS Markit predicts that renewables-powered H2 could be cost-competitive with incumbent methods by 2030.  

Read Next

December 3, 2021
Indian independent power producer (IPP) ReNew Power has signed an agreement with Indian engineering giant Larsen & Toubro (L&T) to develop green hydrogen facilities, becoming the latest PV developer to do so after a string of recent announcements
December 2, 2021
Acciona Energia has struck deals for multiple green hydrogen facilities, one with state-owned Australian energy company Stanwell Corporation and a joint venture with US company Plug Power Inc. to establish multiple production sites across Spain and Portugal
November 23, 2021
Renewables developers and O&M provider RES has appointed two new chief executives to lead on its growth plans.
November 15, 2021
German energy major RWE has entered into a transaction related to the divestment of parts of solar EPC service provider Belectric.
November 8, 2021
Abu Dhabi has said it will bring its renewables capacity up to 8.8GW by 2025 as it seeks to reduce emissions associated with power generation by 50% over the next decade.
November 5, 2021
An alliance of global energy and industrial giants has increased its own green hydrogen commissioning target by tens of gigawatts while simultaneously lauding the role renewables is set to play.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal