Australian pipeline operator Australian Gas Infrastructure (AGIG) said it will start construction soon of a 10MW green hydrogen project in Victoria.
Hydrogen Park Murray Valley at Wodonga, 250km north of Melbourne, will enable supply of a 10pc hydrogen gas blend to 40,000 customers in the Albury-Wodonga region in Victoria and neighbouring New South Wales state. The plant's 10MW electrolyser is expected to begin operating in 2025 and will be eight times larger in capacity than the largest operational electrolyser in Australia, AGIG's Hydrogen Park South Australia (HyP SA).
AGIG, which is owned by Hong Kong-based conglomerate CK, said the federal government's Australian Renewable Energy Agency will provide A$36.1mn ($24.1mn) towards the facility. The Victorian government will also fund the construction by committing A$12.3mn, with additional unspecified financial backing from the federal government's Clean Energy Finance Corporation.
"As an additional supply of carbon-free energy, renewable hydrogen has substantial potential to support Australia's low-carbon objectives," AGIG's chief executive Craig de Laine said on 24 June.
"Our HyP SA project, commissioned in May 2021, has been using excess renewable electricity to produce renewable hydrogen, demonstrating the potential of hydrogen, as well as highlighting the synergies that exist between renewable electricity and renewable gases."
The project is predicted to remove approximately 4,000t of carbon dioxide from AGIG's emissions each year, with the company aiming to deliver 100pc carbon-free gas by no later than 2050 and 10pc renewable gas blends to homes and businesses by 2030 in line with its emissions reduction targets.
Australia has revised regulations to allow hydrogen blending for reducing greenhouse gas emissions, with pilot projects under way in several states.
