Australia backs three 'green' hydrogen projects with more than A$100 mln

CK Infrastructure Holdings

04/05/2021 15:01

By Sonali Paul
    MELBOURNE, May 5 (Reuters) - Australia said on Wednesday it
had awarded A$103 million ($80 million) to back three 'green'
hydrogen projects, hiking its planned funding by almost 50% as
the government seeks to speed up commercial production of the
gas using renewable resources.
    All three projects selected by the Australian Renewable
Energy Agency (ARENA) plan to use 10 megawatt (MW) electrolysers
 to split water using renewable energy to produce hydrogen.
    The electrolysers, nearly 10 times the size of the largest
one in Australia, will be among the biggest in the world.
    "Not only will these projects allow for new export
opportunities, but they will build up domestic demand so we are
able to reduce emissions both here at home and overseas," Energy
Minister Angus Taylor said in a statement.
    Australia, under Prime Minister Scott Morrison, aims to
develop the production and usage of hydrogen to help cut carbon
emissions. Morrison has resisted international pressure to
reduce Australia's emission targets under the Paris Agreement,
which seeks to curb global warming.  urn:newsml:reuters.com:*:nL1N2ME0AJ urn:newsml:reuters.com:*:nL4N2MD0ZQ
    The three projects ARENA chose were from a shortlist of
seven. It originally planned to back two projects with A$70
million but increased the amount offered to A$103 million so it
could back three.
    "Our hydrogen industry in Australia is in its infancy, so
the lessons learned from these three projects - and the entire
funding round - will be important in driving our future hydrogen
economy," ARENA Chief Executive Darren Miller said.
    ARENA awarded funds to France's Engie SA  ENGIE.PA  to use
green hydrogen to make ammonia for export from a plant owned by
Norway's Yara International SA  YAR.OL  in Western Australia.
    The two other winning projects, run by Canada's ATCO
 ACOx.TO  and Australian Gas Infrastructure Group (AGIG), will
produce hydrogen to blend with gas in pipelines.
    AGIG is owned by units of Hong Kong-based CK Group.
    
    ($1 = 1.2915 Australian dollars)

 (Reporting by Sonali Paul; Editing by Edmund Blair)
 ((Sonali.Paul@thomsonreuters.com; +61 407 119 523;))