One of Australia’s largest renewable hydrogen plants is set to go ahead with the Australian Gas Infrastructure Group (AGIG) reaching financial close on its Hydrogen Park Murray Valley development.

On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) announced a $36.1 million commitment to AGIG for the 10MW electrolyser deployment in Wodonga, Victoria.

“Producing renewable hydrogen on this scale has never been done in Australia. The lessons we learn here will help inform our hydrogen industry as it grows from its early stages to a pillar of the net zero economy,” ARENA chief executive officer Darren Miller says.

“It’s essential to scaling up Australia’s renewable hydrogen industry that we get these first-generation projects up and running.”

The Hydrogen Park Murray Valley project will produce renewable hydrogen to initially be blended into the local natural gas distribution network owned by Australian Gas Networks, part of AGIG. The renewable hydrogen produced will displace natural gas supplied to local customers and industry at blends of up to 10%, reducing carbon emissions with no change to amenities for gas users.

With more than 40,000 connections to the local gas network, the project will supply hydrogen to an estimated 85,000 people spanning the border of Victoria and New South Wales. At a blend of 10%, the project is predicted to cut approximately 4,000 tonnes of CO2 each year.

“The strong support received from both the Australian and Victorian Governments demonstrates the importance of renewable hydrogen to decarbonising energy across Australia,” AGIG chief executive officer Craig de Laine says.

“We thank all our project partners and key stakeholders, including the Albury-Wodonga community for their contribution to the project to date.”

The facility will be located next to North East Water’s Wodonga Wastewater Treatment Plant. Once complete, the project will be the largest renewable hydrogen facility on the east coast and equal largest in Australia. Wodonga’s strategic location along a major road freight route also provides access to other end-use markets, particularly in heavy vehicle transport.

The Victorian Government is supporting the project with $12.315 million through the Department of Energy, Environment and Climate Action (DEECA), with additional financial backing from the Clean Energy Finance Corporation (CEFC).

Construction on the project is due to commence in 2023, with the site operational by 2025.