ENGIE will move on with plans to develop a green hydrogen plant in Western Australia to feed an ammonia factory operated by Norway’s Yara International YAR.OL.
The project would use electricity from solar panels and a small battery energy storage system at Yara’s location to operate a 10 MW electrolyzer and produce 640 tonnes of hydrogen annually.
The Yuri project, valued at A$87 million ($58 million), is scheduled to begin construction in November, with initial output beginning in 2024, according to ENGIE.
The largest electrolyzer in Australia so far only has a 1.25 MW capacity. Even though ENGIE’s project is on schedule to start producing the nation’s first 10 MW electrolyzer, it is still viewed as tiny in comparison to initiatives in other nations.
Hyland said that ideally, ENGIE would be in a position to commit to that project over the next three years, but the business has not yet selected a location in the Pilbara area of Western Australia for a larger green hydrogen facility.
He did not provide a cost estimate for a project involving 200 MW to 250 MW electrolyzers, but he did state that the company anticipates cost reductions due to scale, more effective electrolyzers, advancements in the integration of solar, wind, and batteries into hydrogen production, among other things.
Approximately half of the funds for the 10 MW project, which also won a grant from the Western Australian government two years ago, was announced by the Australian government last year.
To develop the Yuri project, Mitsui & Co 8031.T of Japan has agreed to purchase a 28% share in a joint venture business with ENGIE.
Awarded an EPCC: Technip Energies
In order to create Project Yuri Phase 0, a green hydrogen plant in the Pilbara area of Western Australia, Yuri Operations Pty Ltd has granted Technip Energies an Engineering, Procurement, Construction, and Commissioning (EPCC) contract.
A 10 MW electrolysis plant and an 18 MW solar photovoltaic (PV) farm are both included in Project Yuri, which is being developed in collaboration with Yara Clean Ammonia and ENGIE. The electrolysis requires an 8 MW Battery Energy System (BESS), which is part of the 18 MW solar photovoltaic (PV) farm. The current Yara Pilbara Ammonia Plant will utilize the up to 640 tonnes of green hydrogen it produces each year to make green ammonia.
The engineering, procurement, commissioning, and startup of the electrolysis facility are entirely the responsibility of Technip Energies. The engineering, procurement, commissioning, and startup of the PV farm as well as the building of the entire project are handled by Monford Group.