French energy major ENGIE said it has taken a final investment decision to build a renewable hydrogen plant with a 10 MW electrolyzer to provide feedstock into Yara International ASA’s existing ammonia operations near Karratha in the Pilbara region of Western Australia. Construction is scheduled to start in November.
Yara Clean Ammonia has collaborated with ENGIE to develop the so-called Yuri plant, which will support the production of renewable ammonia at the Yara plant.
Yuri is targeted to start operations in 2024. The first phase will produce up to 640 mt/y of renewable hydrogen for Yara, and a 100% offtake contract already is in place between the two parties.
ENGIE said it has reached a deal with Mitsui & Co. Ltd., through which Mitsui will acquire a 28% stake in the joint venture company for the Yuri project, subject to the satisfaction of certain conditions. ENGIE and Mitsui intend to operate the Yuri project through this jv company.
As announced in 2021, the Yuri project is being developed with the support of a A$47.5 million (approximately US32 million at current exchange rates) grant from The Australian Government’s ARENA Renewable Hydrogen Deployment Fund and a A$2 million grant by the Western Australian Government’s Renewable Hydrogen Fund (GM May 7, 2021).
A consortium of Technip Energies and Monford Group has been awarded the Engineering, Procurement, Construction, and Commissioning (EPCC) contract for the renewable hydrogen plant.
This initial first phase would be key to enable the facility to become the “Pilbara Hydrogen Hub,” building on the existing export infrastructure, said Yara.