Yuri Renewable Hydrogen to Ammonia Project
Yuri Renewable Hydrogen to Ammonia Project
This project will construct a 10 MW electrolyser to produce renewables-based hydrogen to replace a portion of the hydrogen produced through the SMR process at Yara Fertilisers’ existing liquid ammonia plant in north-west Western Australia.
| Main proponents:
Yuri SPV (ENGIE lead proponent) |
Main end-use classification:
Industrial process – ammonia production |
Status:
Under construction – scheduled for completion in 2025 |
Estimated cost:
Initial estimate at AUD$87 million (as reported by ARENA) |
| Other involvement:
Yara Pilbara Fertilisers |
Production details:
10-megawatt (MW) electrolyser capacity, capable of producing up to 640 tonnes of renewables-based hydrogen per annum |
Location:
Western Australia, Australia |
Announced funding:
(feasibility study) (capital works grant) AUD$47.5 million – ARENA Renewable Hydrogen Deployment Funding Round AUD$3 million – Western Australian Government Investment Attraction Fund |
Project description
Yara Fertilisers’ existing Pilbara plant produces ammonia by combining nitrogen (from the atmosphere) with hydrogen produced from steam methane reforming (SMR) that uses natural gas as its feedstock. The SMR process separates the natural gas into hydrogen and carbon dioxide, the latter being released to the atmosphere.
Yara (with ENGIE Australia as a supporting partner) undertook a feasibility study to evaluate the opportunity to replace a portion of the hydrogen produced through the SMR process by hydrogen produced via electrolysis powered by onsite solar PV, including development of facilities to serve as a demonstration project for larger-scale renewables-based hydrogen development.
The outcomes of this feasibility study supported the business case for this project.
ENGIE Renewables Australia has formed a Special Purpose Vehicle (SPV) called Yuri to develop the project. Mitsui & Co. Ltd acquired a 28% share in the Yuri SPV. ENGIE and Mitsui would operate the Yuri project through this SPV. Yara would offtake all the produced hydrogen (to partially substitute for hydrogen currently produced through the use of SMR technology).
The project considers application of a 10 MW electrolyser powered by a dedicated solar photovoltaic (PV) farm of approximately 18 MW peak and supported by an 8 MW / 5 MWh lithium-ion battery storage system for firming. The (Alkaline) electrolyser would have the capacity to produce up to 640 tonnes of hydrogen per annum.
The project facilities would be located adjacent to the existing Yara facilities within the Burrup Strategic Industrial Area (SIA) approximately 11 kilometres north-west of Karratha.
Total initial project cost was estimated at around AUD$87 million. This cost has increased due to the extended duration of the project.
In September 2022, ENGIE announced that it had taken a Final Investment Decision in the development of the project. Construction is scheduled to be completed in 2025.
The project is supported by a AUD$47.5 million grant approved through ARENA’s Renewable Hydrogen Deployment Funding Round, as well as by funding from the Western Australian Government’s Renewable Hydrogen Fund (AUD$2 million) and its Investment Attraction Fund (AUD$3 million).
A knowledge sharing report on the development proposal, prepared under the Feasibility Study Grant Funding Agreement with ARENA, as well as a proponent presentation at a ARENA Insights Forum in November 2022, offers further details on the development.
Milestones:
February 2019: Yara International ASA and ENGIE agree to undertake a feasibility study into integrating a renewable hydrogen facility at Yara’s existing ammonia plant on the Burrup Peninsula.
February 2020: ARENA announces a grant of AUD$995,000 to Yara to support the feasibility study.
January 2021: The proposed development is allocated AUD$2 million in grant funding (capital works) under the first round of the Western Australian Renewable Hydrogen Fund, subject to conditions including the project reaching a final investment decision.
May 2021: The project is awarded funding towards a 10 MW electrolyser to produce renewable hydrogen at an existing ammonia facility under ARENA’s Renewable Hydrogen Deployment Funding Round.
September 2022: ARENA release details of the Yuri Renewable Hydrogen to Ammonia Project with an initial total project cost of AUD$87 million and supported by a AUD$47.5 million grant through the above noted Funding Round.
September 2022: ENGIE announces final investment decision for the development.
July 2023: Yuri Operations is recipient of AUD$3 million in grant funding under the Western Australian Government’s Investment Attraction Fund.
Reviewed (reviewed by the project proponent): September 2024