100,000 kg/day production facility, halfway between Melbourne and Sydney
World's largest 6500 kg/day Hydrogen Refuelling Station (HRS) approved and under construction in Melbourne's West
MELBOURNE, Australia, June 22, 2022 /PRNewswire/ -- Hydrogen Fuels Australia (H2FA) and CLARA Energy, a developer of a large scale green hydrogen production facility in Tarcutta NSW, have agreed to plan and build a green hydrogen distribution network along the Hume Highway corridor, worth $600 million, with the first hydrogen refuelling station scheduled to open in 2025.
The two Australian-based hydrogen companies have signed an MOU to fast-track their joint development of up to five hydrogen refuelling stations between Melbourne and Sydney.
CLARA Energy is already well advanced with planning to start operations by 2025 of one of the world's largest green hydrogen production facilities in Tarcutta NSW (halfway between Melbourne and Sydney). H2FA is currently constructing their own large-scale hydrogen refuelling station (HRS) in Truganina, in the heart of Melbourne's largest warehousing and distribution region. Initially, H2FA's 5-hectare site will produce 60-90 kg of green hydrogen from its own 640 kw solar array using a Green Hydrogen Systems A/S (CPH: GREENH) Electrolyser. Permits are in place to ramp up to a refuelling capability of up to 6,500 kg per day, making it one of the largest HRS in the world.
The two companies are collaborating on the large-scale hydrogen project in Tarcutta, NSW, whereby CLARA Energy will be developing production capacity at scale, and H2FA will act as distributor and station operator. The facilities will support freight and logistics companies transitioning their fleets from diesel to hydrogen. Each diesel truck replaced with a hydrogen alternative will abate approximately 2.4 ton of CO2 on a Melbourne to Sydney return journey, demonstrating how transitioning diesel trucks to hydrogen offers a major decarbonisation opportunity for Australia.
The companies are planning to build additional green hydrogen refuelling stations in Epping and Seymour in Victoria, plus another in the Southern Highlands of NSW and a major refuelling station in Sydney. This will complete Australia's first Hume Highway green hydrogen refuelling network.
The agreement between CLARA Energy and H2FA comes as the Victorian, NSW and Queensland governments announced a tripartite Hydrogen Highway strategy to create hydrogen refuelling stations along the main arterial roads along the East Coast of Australia, to facilitate a smooth transition from diesel to green hydrogen transport in the coming decades.
CLARA Energy CEO Nick Cleary: "Creating a green hydrogen production and distribution network along the Hume Highway can help the whole hydrogen industry become viable in Australia. We know the Hume is the busiest truck route in Australia and once the major logistics companies know there will be guaranteed supply of hydrogen at a commercially viable price, it will provide even greater confidence to accelerate the transition of their fleets.''
H2FA Managing Director Francesco Ceravolo: "What this partnership aims to create, for the first time in Australia, is to deliver green hydrogen production and distribution at scale. We believe green hydrogen is necessary to decarbonise heavy freight and ultimately lead to the complete displacement of diesel for green hydrogen."
The CLARA Energy project located on the Hume Highway at Tarcutta in NSW will have the capacity in stage one to produce approximately 25,000 kg per day of green hydrogen at a price competitive with diesel. Stage one will provide adequate green hydrogen supply for approximately 200 heavy haulage trucks running between Sydney and Melbourne daily. The project's two subsequent stages should bring total daily production to at least 100,000 kg per day, enough green hydrogen to support 800 heavy haulage trucks and abating more than 57,000 tonnes of CO2 produced by diesel engines.
The cost of the first stage of the Tarcutta project, which includes a major solar PV installation and the use of electrolysers to convert water into hydrogen and oxygen, will be approximately $500 million.
CLARA Energy and H2FA are already in discussions with truck fleet operators regarding their plans to transition their diesel fleets to new green hydrogen powered trucks. Having new hydrogen refuelling infrastructure completed in time for their arrival is critical for Australia's decarbonisation pledges.
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About CLARA Energy:
CLARA Energy's vision is to bring renewable energy to market at scale. To achieve its vision CLARA Energy is building numerous integrated green hydrogen production facilities. Providing green hydrogen for the transport sector, gas blending into the domestic market and MoU's already signed to supply the Asia export market. CLARA Energy will have its Hume Highway facility operating by 2025 with other projects becoming operational shortly after. CLARA Energy also just completed a detailed report, with its technical partner Arcadis (AMS: ARCAD), to decarbonise the new Inland Rail, and rail sector in Australia generally.
About Hydrogen Fuels Australia:
Hydrogen Fuels Australia is an industry pioneer in the development of next generation modular hydrogen production and integrated refuelling facilities based in Melbourne, Australia. For more information, visit: www.hydrogenfuelsaustralia.com