ReNu’s first ‘tangible’ hydrogen project announced for Tasmania

The Hydrogen Tasmania Brighton Project, as its called, is to be located about half an hour’s drive north of Hobart and is targeting a production of between 430 to 900 kilograms per day, which would equate to between 155 to 330 tonnes annually.

The project is funded by clean energy incubator ReNu Energy and developed by its new subsidiary Countrywide Renewable Hydrogen (CRH), which it acquired in February, launching ReNu’s foray into hydrogen. The companies, via LinkedIn, described it as “our very first tangible renewable hydrogen project.”

CRH has now executed an option to lease a site for the project, it said, though parties must yet agree to the commercial terms for the lease and make definitive arrangements.

The 1 MW to 2 MW facility is set to sit adjacent to the Brighton Transport Hub and is targeting offtake from transport diesel users looking to decarbonise. 

The project also has the “capacity to supply the TasGas Network Bridgewater city gate for potential blending with natural gas,” ReNu’s ASX statement said, with CRH Managing Director Geoffrey Drucker noting the company is in “advanced discussions” with TasGas to either blend the hydrogen or to use it “as 100% hydrogen, a first for Australia.”

The Hydrogen Tasmania Brighton Project is aiming to be in production by early 2024, though this is of course subject to a final investment decision.

CRH has also entered into a term sheet, a non-binding agreement outlining the basic terms and conditions of the investment, with local contractor Bullock Civil Contracting. 

The agreement includes potential to install a behind-the-meter solar farm to lower the project’s electricity cost. The solar component would be located to the north of the intended site’s land parcel in a location CRH jointly identified with Bullock Civil. Tasmanian engineering consultancy Entura has been engaged to undertake a pre-feasibility study on behind the meter solar generation component.

Back to the project at large, owner ReNu said it is “expected to be a collaboration between CRH, an identified partner, Bullock Civil and the Tasmanian government.” Precisely what the state government’s participation will look like is not quite clear, though Drucker said CRH is in discussions with Renewables, Climate and Future Industries Tasmania, a government department, to make sure its domestic hydrogen supply plans support the government’s vision for Tasmania’s energy transformation and its target of net zero emissions by 2030.

Finally, ReNu’s ASX announcement noted the Hydrogen Tasmania Brighton Project “complements advanced discussions with potential offtakers  and partners to progress the planned 5 – 10 MW Tasmania green hydrogen project located in the Bell Bay Advanced Manufacturing Zone.” CRH, owned by ReNu, seems to again be working with the government to progress this project, one of many planned for the Bell Bay industrial centre located in Tasmania’s north.

CRH says it currently has five renewable hydrogen projects under development in Australia, the two in Tasmania, two in Victoria and another in Queensland.