Hydrogen Park Murray Valley

October 23rd, 2023

Hydrogen Park Murray Valley

Hydrogen Park (HyP) Murray Valley would blend renewable hydrogen with natural gas at volumes of up to 10% into the gas distribution networks across Albury (NSW) and Wodonga (Victoria).

Main proponents:

Australian Gas Networks (AGN), part of Australian Gas Infrastructure Group (AGIG)

Main end-use classification:

Focus on hydrogen in gas distribution networks, potential for industry and mobility uses

Status:

Under construction – operations expected to commence in 2025

Estimated cost:

AUD$64 million

Other involvement:

 

Production details:

10 MW Alkaline electrolyser to be installed

 

Location:

Victoria, Australia

Announced funding:

AUD$36.1 million (capital and operational) – Australian Renewable Energy Agency

AUD$12.3 million (capital) – Victorian Government

Additional financial backing from the Clean Energy Finance Corporation

 

Project description

Hydrogen Park Murray Valley is a renewable hydrogen production facility, to be located alongside North East Water’s West Wodonga Wastewater Treatment Plant.

The renewable hydrogen will be blended with natural gas at volumes of up to 10 per cent for supply via the existing gas distribution networks in Albury and Wodonga, delivering to more than 40,000 residential and business connections. About 20 industrial gas users will also receive the renewable gas blend.

HyP Murray Valley also has the production capacity to supply hydrogen to industry and transport markets.

The facility will use electrolysis to split water into hydrogen and oxygen. The 10-megawatt (MW) electrolyser will use renewable energy, through the purchase of large-scale generation certificates (LGCs) created by a Victorian wind farm via a power purchase agreement.

At a blend of up to 10%, the project is predicted to reduce approximately 4,000 tonnes of CO2 emissions per annum.

Wodonga’s strategic location on the Hume Highway, a major road freight route, also provides access to other end use markets, particularly heavy freight transport.

The location of the project next to North-East Water’s West Wodonga Wastewater Treatment Plant also provides potential future synergies to use reclaimed water to produce renewable hydrogen in the future, and in turn for the project to provide North-East Water with the pure oxygen it requires in the wastewater treatment process.

The project aims to participate in Greenpower’s Renewable Gas Certification Pilot to create Renewable Gas Guarantee of Origin (RGGO) certificates, which will be used by Mars Petcare Australia (which would purchase certificates to match the gas use of their local pet food factory in Wodonga).

The project reached financial close in June 2023.

 

Reviewed: February 2024