Engie takes FID on Aussie green H2 project for Yara
- French power group Engie SA (EPA: ENGI) revealed on Friday that it has taken the final investment decision (FID) on its project to develop a green hydrogen production plant in the Pilbara area, Western Australia.
The system, called Yuri, will consist of the setup of a 10-MW electrolyser operating on 18 MW of solar PV power as well as backed by an 8-MW battery power storage space system. The set up will certainly generate green hydrogen for Norwegian fertilizer manufacturer Yara International ASA (OSE: YAR), which will certainly use it as feedstock in its ammonia facility in the Pilbara city of Karratha.
In the initial phase, Yuri will generate up to 640 tonnes of hydrogen each year, Engie claimed.
The Australian Renewable Resource Agency (ARENA) and the Western Australian Government's Renewable Hydrogen Fund sustained the project with multi-million buck grants. Moreover, Engie has become part of a contract with Japanese investor Mitsui & Co Ltd (TYO:8031) to market it a 28% stake in the joint endeavor (JV) for the Yuri project based on specific conditions.
Engie stated it that it intends to run Yuri through this JV together with Mitsui.
Building and construction is slated to start by November 2022. The EPC contract was granted to a consortium of French design firm Technip Energies NV (EPA: TE) and also Australian infrastructure building contractor Monford Group.
Engie anticipates the project to be finalised in 2024.