Plug Power wins mandate for two 5MW electrolysers in Tasmania

Plug Power, the US company which recently pulled out of a deal to build an electrolyser factory in Australia with Fortescue Future Industries, is still keen to stake a claim on the Australian market, promising to supply two devices to Tasmanian hydrogen hopeful Countrywide Hydrogen.

The 5 megawatt (MW) proton exchange membrane (PEM) electrolysers will be installed in Brighton, near Hobart, and Western Junction near Launceston. 

They will be capable of producing 2.1 tonnes of hydrogen a day each, using renewable power sources initially from the grid.

Christchurch company Fabrum will provide the hydrogen refuelling stations and 2000kg/day of storage tubes for sites at Brighton, Western Junction and Burnie.

The final design, which will include space for a second 5 MW electrolyser at Brighton and Western Junction if the need calls for it, will be able to fuel a fleet of 70 fuel cell electric trucks.

“Plug is pleased to support Countrywide Hydrogen with its ambitious green hydrogen projects in the state of Tasmania,” said Plug CEO Andy Marsh. 

“The plants are strategically located to leverage existing infrastructure, and Plug’s PEM electrolyzer systems are a perfect complement to the plant designs.”

It means the company is now ready to start the final design process, says Boyd White, the executive chair of Countrywide Hydrogen, ReNu Energy.

Plans for Tasmanian hydrogen network

Countrywide also has a site at the Bell Bay industrial hub, where it wants to put a 10 MW electrolyser.

All three are set to produce green hydrogen for refuelling stations in Hobart, Launceston and Burnie following a tentative ​​deal with heavy haulage company 7R Logistics to supply 12 trucks converted to fuel cells, as well as potentially feed the gas network.

The company also has plans for two 10MW Victorian locations in Melbourne and Portland.

Super fund HESTA sank $100 million into the company in November and more generally the Tasmanian government is heavily supporting the industry with the $20 million Tasmanian Renewable Hydrogen Fund in 2020 and $70 million to turn the Bell Bay industrial area into a hydrogen hub.

Countrywide Hydrogen wants to be producing the gas by early 2024, but may be pipped by Line Hydrogen which says its George Town project should be ready to go from late 2023. 

It was supposed to star construction this month and also plans to feed the Tasmanian heavy haulage refuelling network, both via the Bonney Energy petrol station chain and its own truck fleet.

No to Queensland

In January, Plug Power nixed a deal with iron ore billionaire Andrew Forrest’s Fortescue Future Industries (FFI) to build a green hydrogen plant in Gladstone.

The deal was looking shaky last year, when Plug Power didn’t mention what is supposed to be the world’s biggest factory of it kind in its nine-month results.

FFI says it is still planning to build the 2 gigawatt-per-year factory, which will make both alkaline and PEM electrolysers.

“We decided that we didn’t want to build a factory with them because we saw the economics, we could do better,” Marsh said. “So we really didn’t think that was worthwhile to move ahead.

“We’re still working with them on electrolyzers. And look, there’s no better green hydrogen plant folks than us in the US. So we really don’t need a lot of help here.”

Plug Power and Forrest signed a letter of intent on the 50-50 joint venture in late 2021 to build electrolysers and possibly expand into fuel cells and refuelling and storage infrastructure.

Plug Power might still provide some electrolysers.