Australia’s ambitious push to cut carbon emissions and boost alternative energy resources reached a new milestone this Saturday, with Energy Minister Chris Bowen announcing the approval of a A$51 million ($34 million) renewable hydrogen plant in Victoria.

According to Bowen, the 10-megawatt electrolyzer to be constructed in Wodonga will outsize any of its kind currently in Australia. The plant’s core function will be to blend green hydrogen into gas networks, a move set to supply around 40,000 homes in the region. This stride towards hydrogen power aligns with Australia’s ongoing mission to lessen its dependence on fossil fuels and cater to the demands of trade partners committed to emission reduction.

Construction of the state-of-the-art electrolyzer, a technology pivotal in producing low-emission hydrogen from renewable power, is slated to commence this year, with the facility expected to be fully operational by 2025.

Funding for this transformative project is provided by several entities. Contributions come from the Victorian Government, the Australian Renewable Energy Agency (ARENA), and the Clean Energy Finance Corporation. The plant will be powered by a wind farm, a testament to the country’s commitment to renewable energy.

ARENA released a statement saying the funds would be allocated to the energy infrastructure company Australian Gas Infrastructure Group (AGIG), which has been tasked with executing the project.

ARENA CEO Darren Miller underscored the scale of renewable hydrogen set to be produced, calling it “unprecedented in Australia.” He emphasized the importance of first-generation projects such as this one in ramping up Australia’s renewable hydrogen industry, stating, “It’s essential to scaling up Australia’s renewable hydrogen industry that we get these first-generation projects up and running.”

In May, Prime Minister Anthony Albanese’s Labor government launched the A$2 billion “Hydrogen Headstart” program, designed to fast-track the production and export of hydrogen fuel. This significant investment reflects the government’s belief in hydrogen’s potential to serve as a sustainable, clean energy source, playing a critical role in reducing the nation’s carbon footprint.

The green light for the Wodonga electrolyzer is a significant step for Australia’s green hydrogen industry, underscoring the potential of renewable energy as a primary driver of the country’s future power infrastructure.

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