The Australian Renewable Energy Agency (ARENA) announced a $36.1 million commitment to the Australian Gas Infrastructure Group (AGIG) for the 10 MW electrolyser deployment in Wodonga, Victoria.
ARENA said in a news release that the project expands on the agency’s current efforts in renewable hydrogen and its track record of producing initiatives in the energy transition in the quest for net zero.
As part of the commitment, the local natural gas distribution network, controlled by Australian Gas Networks, a division of AGIG, will initially be supplemented with renewable hydrogen produced by the Hydrogen Park Murray Valley project.
The facility will be situated next to the Wodonga Wastewater Treatment Plant owned by North East Water.
When finished, the project will be the largest renewable hydrogen facility in Australia and on the east coast.
The renewable hydrogen produced would displace natural gas provided to local customers and industries at up to 10 per cent mixes, decreasing carbon emissions while maintaining gas users’ amenity.
In particular, the project will distribute hydrogen to an estimated 85,000 people across the border of Victoria and New South Wales, with over 40,000 connections to the local gas network.
The initiative is expected to save roughly 4,000 tonnes of CO2 per year at a 10 per cent mix.
ARENA CEO Darren Miller stated the initiative is opening up Australia to renewable hydrogen.
“It’s essential to scaling up Australia’s renewable hydrogen industry that we get these first-generation projects up and running,” Miller said.
According to the CEO, Australia has never achieved this level of renewable hydrogen production, and the knowledge from this experience will guide the hydrogen business as it develops from a fledgeling sector to a cornerstone of the net zero economy.
He added, “What’s exciting about this project is that it will be producing hydrogen that reduces local emissions from day one, with the potential to supply additional markets as they move towards net zero.”
Meanwhile, Craig de Laine, CEO of AGIG, stated the group is honoured to collaborate on this historic initiative with the Victorian and Australian governments.
“The strong support received from both the Australian and Victorian Governments demonstrates the importance of renewable hydrogen to decarbonising energy across Australia,” noted de Laine.
The AGIG CEO added, “We thank all our project partners and key stakeholders, including the Albury-Wodonga community for their contribution to the project to date.”
The Victorian Government is contributing $12.315 million to the project through the Department of Energy, Environment and Climate Action (DEECA), with additional funding provided by the Clean Energy Finance Corporation (CEFC).
To offset its overall gas use, Mars Petcare Australia will buy Renewable Gas Guarantee of Origin credits produced by the project and certified by GreenPower.
After Engie’s Project Yuri in the Pilbara, which received funding from ARENA and reached financial close in September 2022, Hydrogen Park Murray Valley is the second 10 MW project to do so.
Both received financing as a result of a competitive $103 million funding round for projects involving hydrogen electrolysers of industrial size.
