Perth-based Infinite Green Energy (IGE) is pushing ahead with what it says could become Australia’s first commercial-scale renewable hydrogen production facility after it completed the buyout of the 11 MW Northam Solar Farm and signed its first offtake contract this week.
The completion of the Northam deal will allow IGE to leverage the output of the solar farm to power the company’s green hydrogen MEG HP1 project which is to be developed at the solar farm site, about 100 kilometres east of Perth in Western Australia’s (WA) Wheatbelt region.
Once fully operational, the facility is expected to produce up to 4 tonnes of green hydrogen daily. IGE said the scope is there to expand the solar facility to 18 MW, potentially doubling the site’s production capacity to 8 tonnes of green hydrogen daily.
IGE is targeting the domestic heavy transport industry for offtake from the project with the first binding supply agreement signed earlier this week with a WA waste to energy refuge collection company.
The company said it has now commenced a $3 million capital raise to progress the MEG HP1 project. It has reportedly also applied for $5 million in funds from the WA Investment Attraction Fund.
IGE said the capital raising will allow it to progress the Northam project to final investment decision.
IGE founder and Chief Executive Officer Stephen Gauld said the solar farm would immediately generate returns through an existing power purchase agreement (PPA), and he expected more green hydrogen offtake agreements.
“With the security of a PPA in place, our clear path to initial production in 2024 will demonstrate the plant and help to initiate a market for green hydrogen in the commercial mobility sector in Western Australia,” he said. “We have our first contracted customer, and six MOUs from other transport companies in Western Australia.”
The MEG HP1 is the most advanced of IGE’s projects with the company also progressing the Arrowsmith Hydrogen Project, which it says will produce up to 25 tonnes of green hydrogen daily.
IGE first announced plans for the Arrowsmith Hydrogen Project in 2020. To be developed near the town of Dongara, about 320km north of Perth, the first stage of the project woild incorporate 65 MW of solar and 90 MW of wind to produce 25 tonnes of green hydrogen a day.
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