French energy group Engie SA (EPA:ENGI) announced on Friday that it has taken the final investment decision (FID) on its project to build a green hydrogen production plant in the Pilbara region, Western Australia.
The scheme, named Yuri, will include the installation of a 10-MW electrolyser running on 18 MW of solar PV power and backed by an 8-MW battery energy storage system. The set-up will produce green hydrogen for Norwegian fertiliser producer Yara International ASA (OSE:YAR), which will use it as feedstock in its ammonia facility in the Pilbara city of Karratha.
In the first phase, Yuri will produce up to 640 tonnes of hydrogen per year, Engie said.
The Australian Renewable Energy Agency (ARENA) and the Western Australian Government’s Renewable Hydrogen Fund supported the project with multi-million dollar grants. Furthermore, Engie has entered into an agreement with Japanese trader Mitsui & Co Ltd (TYO:8031) to sell it a 28% stake in the joint venture (JV) for the Yuri project subject to certain conditions.
Engie said it that it intends to operate Yuri through this JV alongside Mitsui.
Construction is slated to start by November 2022. The EPC contract was awarded to a consortium of French engineering company Technip Energies NV (EPA:TE) and Australian infrastructure builder Monford Group.
Engie expects the project to be finalised in 2024.
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