Hydrogen technology development firm Hazer Group today revealed that its Board has approved the final investment decision to proceed with its biogas to green hydrogen production facility, to be located in Western Australia.
Hazer’s Commercial Demonstration Project (CDP) will see the Australian company produce low-emission hydrogen and graphite from sewage at a wastewater treatment plant in Munster.
The three-year operation at Woodman Point Wastewater Treatment Plant will produce around 100 tonnes of fuel cell-grade hydrogen, capable of use as a low-emission transport fuel, for power generation or in clean industrial applications, and 380 tonnes of graphite each year, with the potential for expansion.
The project scope has been expanded to include a stationary hydrogen fuel cell power generation system, and Hazer’s Board has revised the previously announced CAPEX budget of $16.65m to $17m.
Hazer said this will allow it to use some of the hydrogen produced by the CDP to generate its own renewable power, thereby offsetting power purchased from utility providers and reducing project operating costs.
According to Hazer, the installation of the hydrogen fuel cell will be one of the first larger-scale installations in Australia and will demonstrate the technology’s ability to be integrated with the Australian grid.
Perth-based Primero Group has been appointed as the engineering, procurement and construction contractor for the project.
Hazer Group Managing Director Geoff Ward said, “This is a significant milestone, and we look forward to moving smoothly into project execution.”
“The Hazer CDP is a key step in demonstrating the commercial readiness of our technology to the growing national, and international, low-emission hydrogen market.”
“We are grateful for the support of ARENA and Water Corporation in making this exciting world-first project possible.”
“The Hazer technology enables a new source of low-emission renewable hydrogen to be developed.”
“It will increase the utilisation of waste resources, improve civic infrastructure and offer new economic opportunities through the development of graphite-manufacturing opportunities and hydrogen for transport or clean energy.”
The CDP is expected to commence pre-commissioning activities in the second quarter of 2021 and achieve practical completion in mid-2021.
The project is intended to operate for up to three years or until the end of 2023, depending on the future operational plans of the Woodman Point facility.
Hydrogen offtake agreement
Hazer said it has not been able to secure a binding agreement with BOC for hydrogen produced from the CDP.
“The intended end-use arrangements for the hydrogen produced by the CDP have not matured in the timeframe originally anticipated or hoped for by BOC and Hazer,” Hazer said in a statement.
“Hazer will continue discussions with BOC to explore opportunities to place the Hazer hydrogen, however the scope of the project has been revised to include the capacity for Hazer to self-consume the hydrogen via a stationary hydrogen fuel cell power generation system.”
“This arrangement has been accepted under the relevant conditions set out in the ARENA funding agreement.”