Early Production System: MEG-HP1

July 10th, 2024

Early Production System: MEG-HP1

The project proponents are progressing a renewables-based hydrogen production plant planned to be located in close proximity to the Northam Solar Farm, east of Perth, with the hydrogen produced targeted for use in the heavy transport sector.

Main proponents:

Infinite Green Energy Ltd, Samsung C&T, Doral Group

Main end-use classification:

Hydrogen mobility

Status:

Under development – FEED is completed with detailed design initiated, EPC tender documents being prepared, first production is targeted for the third quarter of 2026. The project is currently in the early FEED stage for fuel stations designs.

Estimated cost:

AUD$127 million – Project (first phase)

Other involvement:

 

Production details:

10-megawatt (MW) of electrolyser capacity with a production capacity of around 4 tonnes of hydrogen per day. The project would run at 70% production capabilities until the transmission line is upgraded in late 2028, allowing the plant to run at full capacity.

Location:

Western Australia, Australia

Announced funding:

AUD$5 million – Western Australian Government Investment Attraction Fund

Project description

In March 2022, it was announced that Infinite Green Energy (IGE) would acquire the Northam Solar Farm, located approximately 100 kilometres east of Perth. The 11 MW Northam Solar Farm consists of 33,600 solar panels and is constructed over 25 hectares (around 0.25 km2). The Northam facility is already connected to the South West Interconnected System (SWIS) with additional land secured for potential expansion.

The acquisition of the solar farm is a step in support of IGE’s hydrogen project in Northam.   The MEG-HP1 hydrogen production plant, equipped with 10 MW electrolysers, would be located in close proximity to the solar farm.  The electricity from the existing solar farm, plus planned solar expansion (~8 MW), plus electricity from the grid would be used to produce hydrogen, estimated to be around 4 tonnes per day at full capacity. (Note: the project proponent advises that the distribution line is currently constrained with a need to wait until the Transmission line is upgraded to allow 100% production capacity.)

Hydrogen production offtake is initially focussed on the heavy transport sector, targeting back-to-base logistics operators and supporting the town of Northam with an initial hydrogen station. In August 2022, it was reported that the project proponent would work with Refuel Australia who will manage the scheduling, cartage and distribution of the hydrogen on a charge per truck basis.

In February 2023, it was announced that the first supply agreement had been executed with a Western Australian waste-to-energy refuge collection company.

In February 2023, it was reported that Samsung C&T would be an equity partner in the project.

In June 2023, it was announced that the Doral Group would also be acquiring an equity stake in the project. The announcement also noted the scope to expand the solar facility to ~24 MW, allowing sufficient electricity to run the plant longer in winter days while generating sufficient large-scale generation certificates (LGC) to offset grid electricity.

In June 2023, it was announced that the front-end engineering and design (FEED) study for the project had been completed, having been awarded to Technip in the latter part of 2022.

In July 2023, the Western Australian Government announced a funding award of AUD$5 million towards two five MW electrolysers to establish a hydrogen production eco-system, hydrogen storage compression technology and general construction.

A Development and Buildings application has been submitted; however, the project proponent advises that the initial approvals were rejected based on the definition on the use of land category which currently is written for solar and wind. The project proponent advises that additional uses such as hydrogen and ammonia will be part of a revised planning matrix and that it is working with the Western Australian Planning Commission (WAPC) and will submit the full application through the State Development Assessment Unit (SDAU) process.

The first phase of the project is expected to cost AUD$127 million.

 

Reviewed (reviewed by a project proponent): July 2024