ENGIE has taken the final investment decision in the development of one of the world’s first industrial-scale renewable hydrogen projects, to be located in the Pilbara region of Western Australia, according to a press release.
Scheduled for completion in 2024, the first phase of the Yuri project will produce up to 640 tonnes of renewable hydrogen per year as a zero carbon feedstock for Yara Australia’s ammonia production facility in Karratha. This will be key to developing a “Pilbara Green Hydrogen Hub,” serving local and export markets, and building on existing export infrastructure and abundant renewable energy resources in the region.
The Yuri project is being developed with the support of a $47.5m grant from The Australian Government’s ARENA Renewable Hydrogen Deployment Fund and a $2m grant by the Western Australian Government’s Renewable Hydrogen Fund.
ENGIE has executed an agreement with Mitsui & Co., Ltd., pursuant to which Mitsui has agreed to acquire a 28% stake in the joint venture company for the Yuri project, subject to the satisfaction of certain conditions under the agreement.
ENGIE and Mitsui intend to operate the Yuri project through this joint venture company.
Global law firm DLA Piper advised ENGIE on the development, construction and financing of the first phase of Project Yuri, according to a separate release.
The project will include a 10 MW electrolyser powered by 18 MW of solar PV and supported by an 8 MW battery energy storage system, generating renewable hydrogen for use in Yara Australia’s ammonia facility at Karratha. Permitting is completed, a 100% offtake contract is in place with Yara and construction is set to commence by November 2022, thanks to a consortium made of Technip Energies and Monford Group selected as EPC contractor for the project.
Once commissioned it will be amongst the largest renewable energy powered electrolysis in the world, which will provide lessons to accelerate the hydrogen industry in Australia and demonstrate the ability to integrate electrolysers with ammonia plants, the release states.
