Yuri Renewable Hydrogen to Ammonia Project (Renamed Project, Project progressed to Under Construction)

September 18th, 2022

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 2024

Estimated cost:

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)
AUD$995,000 – The Australian Renewable Energy Agency (ARENA)

(capital works grant)
AUD$2 million – Western Australian Government Renewable Hydrogen Fund, subject to conditions including the project reaching a final investment decision

AUD$47.5 million – ARENA Renewable Hydrogen Deployment Funding Round (conditional award)

Project description

(This project was previously titled ‘Yara-ENGIE Pilbara Renewable Ammonia’.)

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) has undertaken 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 has agreed to acquire a 28 % share in the Yuri SPV, subject to satisfaction of certain conditions being fulfilled. 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 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 project cost is estimated at around AUD$87 million.

In September 2022, ENGIE announced that it had taken a Final Investment Decision in the development of the project, with construction to be completed in 2024.

The project is supported by a AUD$47.5 million grant conditionally 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, conditional on project financial close).

A knowledge sharing report on the development proposal, prepared under the Feasibility Study Grant Funding Agreement with ARENA, 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 conditional 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 a total project cost of AUD$87 million and supported by a AUD$47.5 million grant conditionally approved through the above noted Funding Round.

September 2022: ENGIE announces final investment decision for the development.

 

Updated: September 2022