Hydrogen pipes backed
Funding is coming together for a renewable hydrogen project in Victoria.
The Australian Gas Infrastructure Group (AGIG) has secured financial support for its Hydrogen Park Murray Valley project.
The Australian Renewable Energy Agency (ARENA) has committed $36.1 million to AGIG for the deployment of a 10 MW electrolyser in Wodonga, Victoria.
The Hydrogen Park Murray Valley facility will initially blend renewable hydrogen into the local natural gas distribution network, owned by Australian Gas Networks, a subsidiary of AGIG.
It will be located adjacent to North East Water's Wodonga Wastewater Treatment Plant and is set to become the largest renewable hydrogen plant on the east coast and in Australia overall.
By displacing natural gas with renewable hydrogen at blends of up to 10 per cent, the project aims to reduce carbon emissions without affecting the gas users' experience.
With over 40,000 connections to the local gas network, the project is expected to provide hydrogen to approximately 85,000 people across the Victoria-New South Wales border, resulting in an estimated annual reduction of 4,000 tonnes of CO2.
In addition to ARENA's funding, the Victorian Government is supporting the project with $12.315 million through the Department of Energy, Environment, and Climate Action.
The Clean Energy Finance Corporation (CEFC) is also providing financial backing.
Furthermore, Mars Petcare Australia plans to purchase Renewable Gas Guarantee of Origin certificates from the project to match the gas consumption of its local pet food factory in Wodonga.
ARENA CEO Darren Miller says it is a highly significant project, stating that it sets the stage for renewable hydrogen in Australia.
He has also highlighted the importance of implementing first-generation projects to scale up the country's renewable hydrogen industry.
AGIG CEO Craig de Laine has expressed pride in collaborating with the Australian and Victorian Governments, underscoring the support received and the role of renewable hydrogen in decarbonising energy nationwide.
Construction on the Hydrogen Park Murray Valley project is scheduled to begin in 2023, with operations expected to commence by 2025.