Engie and ATCO handed $71m in Federal funding to build two of world’s biggest renewable hydrogen projects

Two of the world’s biggest renewable hydrogen projects will be built in regional WA after they were handed $71 million in Federal Government funding. Karratha-based Engie — which has been handed $42.5 million — plans to transition to using renewably-produced hydrogen to create ammonia, which in turn would be exported and used to produce carbon-free fertiliser. ATCO, which is investigating mixing hydrogen with natural gas at its Warradarge Clean Energy Innovation Park — with the eventual goal of piping the lower-carbon blend into customers’ houses — will receive $28.7 million. Both will use the money to build 10MW electrolysers — among the biggest in the world — which use renewable energy to split water into oxygen and hydrogen. The grants are being provided through the Commonwealth-backed Australian Renewable Energy Agency as part of a $103.3 million funding round, with the third and final recipient — Australian Gas Networks Limited in regional Victoria — also exploring gas blending. The Commonwealth Government hopes to bring the cost of hydrogen below $2 per kilogram, which is believed to be the point at which it becomes price competitive with existing energy alternatives for large scale deployment. Energy Minister Angus Taylor said the ARENA funding would fast-track construction of the projects, which are forecast to create 210 jobs during the build phase and contribute to a hydrogen industry forecast to reach $11 billion a year by 2050. “The Morrison Government is committed to building a clean and competitive hydrogen industry in Australia, and these projects are a huge step towards Australia cementing its place as a world leader,” Mr Taylor said. “These projects show how our existing ammonia industry and gas pipeline network will be crucial to the future clean hydrogen sector. This will be key to bringing down the cost of renewable hydrogen production and distribution. “Not only will these projects allow for new export opportunities, but they will build up domestic demand so we are able to reduce emissions both here at home and overseas.” ARENA chief executive Darren Miller said the three chosen projects would help “kickstart” mass renewable hydrogen production in Australia. “One of the projects will see clean hydrogen used to make ammonia for export and the other two will blend clean hydrogen into our gas pipelines to help decarbonise our natural gas networks,” Mr Miller said. “Our hydrogen industry in Australia is in its infancy, so the lessons learned from these three projects — and the entire funding round — will be important in driving our future hydrogen economy. “With more than $100 million in funding, we’re hoping to build some of the biggest hydrogen electrolysers in the world, with the ultimate goal of bringing down the cost of hydrogen produced using renewable energy and growing our skills and capacity to meet future global demand for hydrogen.”