Dubbed project Yuri, H2 View understands, the first phase of the project, scheduled for competition in 2024 will produce up to 640 tonnes of hydrogen per year which will be used as a feedstock for Yara Australia’s ammonia production facility in Karratha.

With construction set to commence in November 2022, the project will include a 10MW electrolyser which will be powered by 18MW of solar PV.

ENGIE has said it will come as a key steppingstone in the development of the ‘Pilbara Green Hydrogen Hub’ which looks to serve local and export markets by building on existing export infrastructure and renewable energy resources in the region.

The project has received federal and state funding. In 2021, project Yuri was awarded a $47.5m grant from the Australian Government’s ARENA Renewable Hydrogen Deployment Fund, as well as a $2m grant from the Western Australian Government’s Renewable Hydrogen Fund.

Additionally, ENGIE has said it has signed an agreement with Mitsui & Co which will see the Japanese firm take a 28% stake in the joint venture company for the project. H2 View understands, ENGIE and Mitsui intend to operate the Yuri project through the joint venture company.

Magnus Ankarstrand, President of Clean Ammonia at Yara, commented, “Yara brings to the project extensive operational experience in Australia and our company’s global leadership in developing a clean ammonia market for diverse application such as carbon-free food production, low-emission fuel for shipping and power, and ammonia for industrial applications.”

Sébastian Arbola, Executive Vice-President for Thermal Generation, Hydrogen and Energy Supply Activities at ENGIE, said, “I am delighted to see the Yuri project moving forward very concretely as it fully illustrates one of the pillars of ENGIE’s hydrogen roadmap: industrial decarbonation. Thanks to Australian authorities, we pave the way for hydrogen market development worldwide.”

Andrew Hyland, CEO of ENGIE Australia and New Zealand, added, “We have a strong pipeline of renewables, storage and hydrogen projects in Australia; as each one of these projects reaches financial close, construction and commissioning, we get closer to decarbonising our economy and realising our ambitious Net Zero targets.”