Aussie Govt’s Green H2 Investment Signals a Move Towards Clean Energy

By Sophia Francise

June 26, 2023

Australian Energy Minister Chris Bowen announced the Australian government’s commitment to supporting transitioning from coal by providing over AUD 51 million for Victoria’s 10-MW green hydrogen plant.1

Australian Gas Infrastructure Group AGIG plans to build a 10 MW electrolyzer in the Hydrogen Park Murray Valley, producing 4.5 tonnes of hydrogen daily.

The facility, powered by renewable energy from a Victorian wind farm, will produce green hydrogen for 40,000 residential, commercial, and industrial customers in Wodonga and Albury, New South Wales.

The project, the largest renewable hydrogen facility on the east coast and Australia will replace natural gas at 10% blends, reducing carbon emissions without impacting gas users’ amenities.

Additional Sources of Financing

The Victorian government will contribute AUD 12.3 million to the scheme, with AUD 36.1 million from ARENA and CEFC providing an additional financial package.

“The strong support received from both the Australian and Victorian Governments demonstrates the importance of renewable hydrogen to decarbonizing energy across Australia. We thank all our project partners and key stakeholders, including the Albury-Wodonga community, for their contribution to the project to date,” said AGIG CEO Craig de Laine.

ARENA has committed $255 million to renewable hydrogen projects since 2017 and will contribute to the Australian Government’s $2 billion Hydrogen Headstart initiative. 

Construction is expected in 2023, with the site operational by 2025.

References

  1. Department of Climate Change, Energy, the Environment and Water, ‘Joint media release: Bolstering Australia’s green hydrogen potential in Albury-Wodonga’, 23 June 2023, https://minister.dcceew.gov.au/bowen/media-releases/bolstering-australias-green-hydrogen-potential-albury-wodonga.[]
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