Engie’s Australia Hydrogen Project Moves Forward

• Engie announces final investment decision for $87 million renewable hydrogen plant for Yara Pilbara Fertilizers in Western Australia
• With a 10 MW electrolyzer powered by 18 MW solar PV and 8 MW/5MWh lithium-ion battery, hydrogen generated will be supplied to Yara for ammonia production which will then be exported internationally
• While Japan's Mitsui will take 28% stake in the Engie project company, Technip Energies and Monford Group of France have been hired as EPCC service providers
• Learnings from the project will help understand challenges and opportunities into developing commercial scale hydrogen electrolyzer projects in the future

France's Engie has taken final investment decision for one of the world's 'largest' renewable hydrogen plants and Australia's 'largest' electrolyzer after the Australian Renewable Energy Agency (ARENA) conditionally approved $47.5 million to support its solar and storage powered project in Western Australia.

An additional $2 million grant has been approved by Western Australia's Renewable Energy Fund for the same facility. The project comprises a 10 MW electrolyzer with capacity to produce up to 640 tons of renewable hydrogen annually, and will be powered by an 18 MW solar PV system and 8 MW/5MWh lithium-ion battery for firming.

Hydrogen and electricity generated by $87 million Yuri project will supply hydrogen and electricity to Yara Pilbara Fertilizers for its liquid ammonia plant in Karratha which in turn will be exported globally.

Engie Renewables Australia Pty Ltd will execute the project through its subsidiary Yuri Operations Pty Ltd that has now also hired engineering, procurement, Construction and Commissioning (EPCC) contractor Technip Energies and Monford Group of France.

Engie has also brought on board Japan's Mitsui & Co Ltd as a 28% stakeholder in the Yuri project. They now plan to break the ground on site by November 2022. The French company said facility will be 'key to developing a Pilbara Green Hydrogen Hub serving local and export markets'.

"The Yuri project is Australia's first really substantial renewable hydrogen project, and it is one of the largest so far in the world," said ARENA CEO Darren Miller while explaining the importance of this project. "The Yuri project is exciting because fertilizer production is a significant existing end use for hydrogen and one where we can make an immediate difference because we are replacing fossil fuels with renewable energy to make hydrogen."

It will also enable an understanding into producing renewable hydrogen at scale offering insights into technical complexities, economics and supply chain considerations for similar commercial scale hydrogen electrolyzer projects in the country, in the future.

Back in May 2021, ARENA had conditionally approved $103.3 million for 3 renewable hydrogen projects with one of them being the Engie facility that was promised up to $42.5 million from the government agency (see 3 Green Hydrogen Projects Get $103.3 Million From ARENA).