Producing green hydrogen

Climate change and Melbourne’s growing population are placing strain on finite resources like water and energy. It's important that we plan for and adapt to this changing environment.

As part of our commitment to innovate to tackle the challenges of climate change, go beyond zero carbon and create a brighter future for communities and the environment, we’re proposing to build a green hydrogen production facility to provide ‘green’ renewable hydrogen as a clean source of energy to power homes, vehicles and industry.

We’re launching a $1.7m pilot project at our Aurora treatment plant in Wollert to confirm technology which would enable the production of sustainable hydrogen energy.

This pilot project is expected to start in mid-August 2023 and will run for 12 months.

Once we’ve confirmed the technology works, we will explore the potential for a permanent green hydrogen production facility at Aurora.

What is hydrogen?

Hydrogen is the most abundant element in the universe and at standard temperature and pressure, is a colourless, odourless, tasteless, nontoxic, non- metallic, highly combustible gas.

Hydrogen is similar to natural gas in terms of its applications and handling, and is outstanding from an energy perspective because it:

emits absolutely no carbon dioxide (CO2) emissions when burned
is an excellent carrier of energy.

This energy can be released as heat through combustion, or as electricity using a fuel cell. In both cases the only other input needed is oxygen, and the only by-product is water.

What is green hydrogen?

The cleanest form of hydrogen is ‘green’ and this is the only type produced using renewable energy, with zero carbon emissions.

What are the benefits of using green hydrogen?

Hydrogen is a clean renewable energy, and its widespread adoption as an energy source to power homes, vehicles and industry will reduce our reliance on fossil fuels.

Together with solar power and wind power, hydrogen can help us decarbonise our energy systems.

Benefits of green hydrogen include:

Blending it into the natural gas network
Using it in fuel cells to generate electricity and power vehicles
Reducing our reliance on fossil fuels such as petrol and natural gas
Slashing greenhouse gas emissions
Contributing to lower customer bills in the long term
Contributing towards Yarra Valley Water achieving its commitment to become net zero in 2025
Contributing towards both Victoria and Australia achieving their commitment of net zero carbon emissions by 2050

How is green hydrogen produced?

Hydrogen is the most abundant element on earth, and when combined with oxygen, it forms water. You may recall from science lessons at school that water is made up of two parts hydrogen, and one part oxygen, with the chemical description of H2O.

Through a process called electrolysis, we’ll be adding a direct current of electricity into water to separate its hydrogen and oxygen molecules. We can store the hydrogen as a gas in fuel cells, ready to power cars and trucks, heat homes, and to be combined into the existing natural gas network.

Green hydrogen is made from renewable energy sources.

Frequently asked questions

Why is Yarra Valley Water exploring green hydrogen production?

We believe water utilities have a natural role to play in Australia’s hydrogen future because water is central to hydrogen production. And the by-product from hydrogen production – oxygen – can potentially be used to make our sewage treatment processes more efficient.

We know the Victorian water industry is responsible for more greenhouse gas emissions than any other government sector and we need to do all we can to lessen our impact. At Yarra Valley Water, we’re already committed to become net zero in 2025 through our work to transform food waste into energy and generate solar power on our land.

Now we’re excited to explore the potential for Aurora to produce green hydrogen, which is made using recycled water and renewable energy sources. We’re manufacturing both at Aurora, which is powered by green energy from our award-winning food waste to energy facility.

Where will the green hydrogen production facility be located?

We’re proposing to develop a green hydrogen production facility at our existing Aurora treatment plant site at Wollert, in Melbourne’s northern suburbs.

With this facility we can help tackle climate change by providing green hydrogen as a clean source of energy to power homes, vehicles and industry. Clean energy can be used instead of fossil fuels like petrol and natural gas which cause greenhouse gas emissions.

The Yarra Valley Water-owned Aurora site is a ‘unicorn’ location ideal for green hydrogen production:

Buffer distance from homes – the facility would be located near the centre of the large 160-hectare land parcel known as Aurora, and provides a buffer zone of over 700 metres, over the Hume Freeway, to the nearest homes
Access to clean, renewable energy – our Wollert food waste to energy facility that has been producing clean energy at the Aurora site since 2017. This energy is needed as part of the electrolysis process.
Access to recycled water – our Aurora recycled water treatment plant that has been producing recycled water by treating sewage flows since 2006. This water will be used as part of the electrolysis process.
Access to a nearby large gas main suitable for blending green hydrogen gas into the existing natural gas network
Potential customers – there are several interested industries located nearby that are wanting to decarbonise their fuel.

When will the pilot project occur?

The green hydrogen pilot project is expected to start at our Aurora site in mid-August 2023. It was originally planned to start in October 2022 but significant shipping delays for some components meant we needed to reschedule.

What happens after the pilot project ends?

The pilot project will run for 12 months. Once we have confirmed the technology works, we’ll explore the potential for a permanent green hydrogen production at Aurora in the future.

We’ll keep the community and stakeholders informed through our website as the project develops.

Is it safe?

Yes, hydrogen is safe.

Hydrogen is a fuel and, like petrol and natural gas, there are safety procedures that must be followed to ensure it is stored and used safely.

Hydrogen has been used for over 200 years across a range of industries, and is commonly used in refining petroleum, treating metals, producing fertiliser and processing foods.

Hydrogen fuel is increasingly being accepted as a safe energy source around the world. For example, there are already more than 160 hydrogen service stations operating in Japan, and more than 100 in California, USA.

European nations including Germany are showing great leadership in planning for the transition to renewable fuels.

Is it smelly?

No, there will not be any noticeable smell.

Hydrogen itself has no smell. The process of electrolysis to produce green hydrogen uses clean energy and recycled water that already exists at the Aurora site, so it won’t need any new ways to control odour.

The Aurora site is currently being used to treat sewage flows and process organic food waste, and already has a comprehensive odour management plan in place, including having a buffer zone of over 700 metres to the nearest home. This plan is approved and monitored by the Environment Protection Authority Victoria (EPA).

Is it noisy?

No, there will not be any noticeable noise.

The trial will require the use of mechanical components such as pumps and compressors, however they will all be contained within an enclosed shipping container.

The Aurora site consists of several large treatment plants and a food waste to energy facility, and these already have a comprehensive noise management plan in place, including having a buffer zone of over 700 metres to the nearest home. This plan is approved and monitored by the Environment Protection Authority Victoria (EPA).

Is hydrogen being produced elsewhere in Australia?

Yes, hydrogen is already being produced at several locations in Australia. Some examples are below:

Toyota’s EcoPark demonstration in Altona, Victoria was completed in 2021
Hydrogen Park in South Australia was completed in 2021
Hazer Project in Western Australia is due to be completed in late 2022
Western Sydney Green Gas Project in New South Wales was completed in late 2021.

At least ten water retailers around Australia are also planning to develop similar hydrogen production facilities.

How is green hydrogen production at Aurora being funded?

Yarra Valley Water is initially funding the $1.7 million pilot project under its research and innovation budget. Completing the pilot project is a conditional requirement to accessing Victorian government funding of $11.9 million from Round 2 of the Energy Innovation Fund for the development of a larger, permanent green hydrogen production facility at Aurora.

We intend for this permanent facility to pay for itself once operational, and we’ll be able to recover the initial $1.7 million funding for the pilot project. Therefore, our customers’ water bills are not funding this project.

Will this lead to higher water bills?

No, this project has no impact on our customers’ water bills.

One of the benefits of exploring green hydrogen production at Aurora is the opportunity to improve the health and wellbeing of future generations, which would put downward pressure on future customers’ water bills.

How can I have a say about green hydrogen production at Aurora?

Green hydrogen production at the Aurora site is proceeding as a pilot project from August 2023.

We believe the water industry is well placed to support Australia’s green hydrogen strategy and we plan to explore the potential for a permanent green hydrogen facility at Aurora, depending on the outcome of the pilot project. We’ll consult the community and stakeholders as part of its development.

Where can I find out more about hydrogen?

You can find out more from these websites:

Contact us

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