ARENA announces $79.7M in funding for renewable hydrogen projects

In Australia, on behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has announced that it has conditionally approved A$103.3 million towards three commercial-scale renewable hydrogen projects, as part of its Renewable Hydrogen Deployment Funding Round.

The three successful projects are:

• • Engie Renewables Australia Pty Ltd (Engie): ARENA will provide up to A$42.5 million towards a 10 MW electrolyzer project to produce renewable hydrogen in a consortium with Yara Pilbara Fertilizers at the existing ammonia facility in Karratha, Western Australia;
• • ATCO Australia Pty Ltd (ATCO): ARENA will provide up to A$28.7 million towards a 10 MW electrolyzer for gas blending at ATCO’s Clean Energy Innovation Park in Warradarge, Western Australia;
• • Australian Gas Networks Limited (AGIG): ARENA will provide up to A$32.1 million in funding for a 10 MW electrolyzer for gas blending at AGIG’s Murray Valley Hydrogen Park in Wodonga, Victoria.

To support these projects ARENA has increased the funding envelope, originally A$70 million, by A$33.3 million. In total, these three projects have a combined project value of A$161 million.

At 10 MW, the electrolyzers in these hydrogen plants will be among the largest so far built in the world.

The projects will also play a significant role in supporting commercial-scale deployments of renewable hydrogen in Australia and help progress Australia’s pathway to achieving the Australian Government’s goal of H2 under A$2′.

Engie will use renewable hydrogen to produce ammonia at the Yara Pilbara Fertilizers site, while ATCO and AGIG’s projects will use renewable energy to produce renewable hydrogen for gas blending into existing natural gas pipelines.

Last year, ARENA launched the funding round to support Australia’s first commercial scale hydrogen projects to fast track the development of renewable hydrogen in Australia.

The funding round called for expressions of interest from large scale hydrogen electrolyzer projects across Australia to drive the commercialization of key component technologies and facilitate cost reductions for producing renewable hydrogen. ARENA received 36 expressions of interest from across Australia, and following an initial assessment, seven projects were shortlisted and invited to submit full applications.

After an extensive assessment process, three projects were selected for funding. Engie, ATCO and AGIG must now satisfy a number of development conditions and achieve financial close before funding is released. ARENA will continue to work with the companies to achieve this.