With the Australian Gas Infrastructure Group (AGIG) reaching a financial close on its Hydrogen Park Murray Valley development, one of Australia’s largest renewable hydrogen facilities is expected to advance.
On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has announced a $36.1 million investment to AGIG for the 10 MW electrolyser deployment in Wodonga, Victoria.
The project draws on ARENA’s previous work in renewable hydrogen and its track record of delivering revolutionary solutions in the energy transition in pursuit of net zero.
The Hydrogen Park Murray Valley project would generate renewable hydrogen that will first be blended into the local natural gas distribution network controlled by Australian Gas Networks, a subsidiary of AGIG.
The facility will be located near North East Water’s Wodonga Wastewater Treatment Plant.
The renewable hydrogen produced would substitute natural gas provided to local customers and industries at up to 10% blends, decreasing carbon emissions while maintaining gas users’ amenities.
According to ARENA, the project will distribute hydrogen to an estimated 85,000 people across the border of Victoria and NSW, with over 40,000 connections to the local gas network. The project is expected to save roughly 4,000 tonnes of CO2 annually at a 10% mix.
The Victorian Government is contributing $12.315 million to the project through the Department of Energy, Environment and Climate Action (DEECA), with additional funding provided by the Clean Energy Finance Corporation (CEFC).
Hydrogen Park Murray Valley is the second ARENA-supported 10 MW project to attain financial close, following Engie‘s Project Yuri in the Pilbara in September 2021. Both were funded as part of a competitive funding round of $103 million for commercial-scale hydrogen electrolyser projects.
According to ARENA CEO Darren Miller, the initiative is paving the way for renewable hydrogen in Australia.
Miller said getting these first-generation plants up, and operating is critical to scale up Australia’s renewable hydrogen economy.
“Producing renewable hydrogen on this scale has never been done in Australia. 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 stated.
“ARENA has been at the forefront of advancing renewable hydrogen projects and will continue to play an integral role, as we support the Australian Government’s Hydrogen Headstart program and other large scale projects,” Miller added.
AGIG CEO Craig de Laine stated that the company is honoured to collaborate with both the Australian and Victorian governments on this historic initiative.
“The strong support received from both the Australian and Victorian Governments demonstrates the importance of renewable hydrogen to decarbonising energy across Australia. We thank all our project partners and key stakeholders, including the Albury-Wodonga community for their contribution to the project to date,” de Laine said.
ARENA has invested over $255 million in renewable hydrogen projects since 2017. ARENA will also play a vital part in developing the Australian Government’s $2 billion Hydrogen Headstart program, which will fund Australia’s largest green hydrogen projects.
