ATCO AND AGIG RECEIVE $28.7M FROM ARENA FOR GREEN HYDROGEN PRODUCTION
ATCO and Australian Gas Infrastructure Group’s (AGIG) plans for a commercial scale, green hydrogen production facility are set to become a reality with the announcement today that their Clean Energy Innovation Park (CEIP) project has received $28.7M in funding from the Australian Renewable Energy Agency.
The CEIP is intended to establish Australia’s first commercial scale green hydrogen supply chain, including a 10MW electrolyser and plant capable of producing up to 4.0 tonnes of hydrogen per day, along with storage and delivery to the gas network injection points.
ATCO Australia Managing Director and Chief Operating Officer Patrick Creaghan said this was an exciting step for ATCO, and for Western Australia’s progress towards achieving its hydrogen goals.
“We’ve been investing in hydrogen since 2017 and are strong believers in its value as we strive towards a cleaner energy future,” Mr Creaghan said.
“The development of the CEIP has the dual benefit of not only contributing to the decarbonisation of the gas distribution network, it also allows us to generate the economies of scale required to expand the demand and use of renewable hydrogen as a commercially viable fuel.”
AGIG's CEO, Ben Wilson said this was an exciting announcement and complements AGIG’s leading renewable hydrogen projects being delivered across the energy value chain in Australia, with a number of major projects across all the mainland states.
“ATCO and AGIG are already significant players in the Western Australia gas market, providing distribution and transmission services respectively, and the CEIP joint venture brings together our strengths to establish a commercial hydrogen sector in the state. We look forward to working with ATCO who bring with them extensive energy and hydrogen industry experience locally and internationally." Mr Wilson said.
ARENA CEO Darren Miller said renewable hydrogen presents an opportunity to help reduce emissions globally and locally, transform our energy system, and create a new export industry for Australia.
“We’re excited to have chosen three projects we believe will help kickstart renewable hydrogen production in Australia at a large scale. 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.
“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.
The CEIP is planned to be co-located with the 180MW Warradarge Wind Farm in Western Australia’s Mid-West, which will provide the renewable electricity to power the electrolyser. Hydrogen generated will then be transported via truck to gas network injection points.
Funding will enable additional planning work to take place, with a Final Investment Decision estimated in December 2022.
With approximately 6,200 employees and assets of $22 billion, ATCO is a diversified global holding corporation with investments in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Energy Infrastructure (electricity generation, transmission, and distribution; natural gas transmission, distribution and infrastructure development; energy storage and industrial water solutions; and electricity and natural gas retail sales); Transportation (ports and transportation logistics); and Commercial Real Estate.
The CEIP leverages ATCO’s learnings from its Clean Energy Innovation Hub, a pilot project which saw the company become the first in Australia to generate and use green hydrogen. ATCO is also developing a hydrogen vehicle refuelling station, with partner FMG, and planning for a pilot to blend hydrogen within the natural gas network in WA. www.atco.com.au.
Australian Gas Infrastructure Group (AGIG) formed in May 2017 with the coming together of three businesses – AGN, Multinet Gas Networks (MGN) and Dampier to Bunbury Pipeline (DBP). AGIG owns and operates one of Australia's largest gas infrastructure businesses with operations across every mainland state and the Northern Territory supplying approximately 2 million customers. Operations include 40,000km of gas distribution and transmission pipelines, 60 petajoules of gas storage capacity, gas processing facilities and remote power generation.
AGIG also owns and operates Hydrogen Park South Australia, currently Australia’s largest electrolyser, which will blend renewable hydrogen into its local gas distribution network and supply industrial customers via Tube Trailers. AGIG is also developing Hydrogen Park Gladstone in Queensland.
AGIG's vision is to be the leading gas infrastructure business in Australia - by delivering for customers, being a good employer, and being sustainably cost efficient. www.agig.com.au
AGIG Media contact:
Craig de Laine, Executive General Manager, Customer and Strategy, AGIG T (08) 8418 1129 M (0403) 309 940
ATCO Media contact:
Pip Lapelms, Senior Manager Corporate Affairs, 0404 029 836