The Australian Renewable Energy Agency (ARENA) has conditionally proved $47.5 million towards ENGIE’s renewable hydrogen and ammonia project near Karratha in Western Australia. The project is one of the world’s largest renewable hydrogen plants built in the Pilbara.

The $87 million Yuri project includes a 10MW electrolyser to produce renewable hydrogen, an 18MW solar system to power the electrolyser and an 8MW/5MWh lithium-ion battery for firming and will supply hydrogen and electricity to Yara Pilbara Fertilisers at its neighbouring liquid ammonia facility. Once completed, the project will be Australia’s largest electrolyser, capable of producing up to 640 tonnes of renewable hydrogen per year.

The project is supported by the Australian Government with a $47.5 million grant conditionally approved through ARENA’s Renewable Hydrogen Deployment Funding Round. The project is also receiving $2 million in funding from the Western Australian Government’s Renewable Hydrogen Fund as part of the WA’s Renewable Hydrogen Strategy.

The project is expected to reach financial close by the end of September. Construction will commence in October and be completed by early 2024.

ENGIE Renewables Australia (ENGIE) has formed a subsidiary called Yuri to develop the project. Mitsui & Co. Ltd (Mitsui) has agreed to acquire a 28% stake in the Yuri subsidiary subject to satisfaction of certain conditions under its investment agreement. ENGIE and Mitsui intend to operate the Yuri project through this joint venture company.

In 2019, ARENA supported Yara with a $995,000 grant to investigate the feasibility of a renewable hydrogen and ammonia facility in the Pilbara. Positive outcomes of that study underpin the business case for the Yuri project.

Electrolysers can utilise renewable electricity to split water into hydrogen and oxygen. The renewable hydrogen produced can be used as a feedstock for chemicals such as ammonia, combusted for heat or electricity generation, or used as a zero-emissions transport fuel. Ammonia is most commonly used to produce agricultural fertilisers which is currently made using hydrogen derived from fossil fuels.