Government grants $47.5m funding to Australia’s first large scale hydrogen plant

The project is expected to start operations by early 2024.

The Australian government has conditionally approved A$47.5m funding to ENGIE’s renewable hydrogen and ammonia project in Western Australia, the country’s first large-scale hydrogen plant.

In a statement, the Australian Renewable Energy Agency said the A$87 project includes a 10-megawatt electrolyser for hydrogen production, 18MW solar power, and 8MW/5MW-hour lithium battery.

The project is expected to reach financial close by the end of September, and start construction in October, with the completion targeted by early 2024.

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Once completed, the project can produce up to 640 tonnes of renewable energy hydrogen annually. It will provide hydrogen and electricity to Yara Pilbara Fertilisers.

ARENA said the project will also receive A$2m in funding from the Renewable Hydrogen Fund as part of the Western Australian Government’s Renewable Hydrogen Strategy.

The agency has committed a total of over A$88m to renewable hydrogen projects from 2021 to 2022, ranging from feasibility studies, to small-scale electrolyser demonstrations, gas blending trials, and vehicle deployments.