H2FA, CLARA Energy to Create $600 Mn Green Hydrogen Production and Distribution Network

Hydrogen Fuels Australia (H2FA) and CLARA Energy have agreed to plan and build a green hydrogen distribution network along the Hume Highway corridor, worth $600 million, with the first hydrogen refuelling station scheduled to open in 2025. 

The two Australian-based hydrogen companies have signed an MOU to fast-track their joint development of up to five hydrogen refuelling stations between Melbourne and Sydney.

The two companies are collaborating on the large-scale hydrogen project in Tarcutta, NSW, whereby CLARA Energy will be developing production capacity at scale, and H2FA will act as distributor and station operator. 

The facilities will support freight and logistics companies transitioning their fleets from diesel to hydrogen. Each diesel truck replaced with a hydrogen alternative will abate approximately 2.4 ton of CO2 on a Melbourne to Sydney return journey, demonstrating how transitioning diesel trucks to hydrogen offers a major decarbonisation opportunity for Australia.

The companies are planning to build additional green hydrogen refuelling stations in Epping and Seymour in Victoria, plus another in the Southern Highlands of NSW and a major refuelling station in Sydney. This will complete Australia's first Hume Highway green hydrogen refuelling network.

CLARA Energy CEO Nick Cleary: "Creating a green hydrogen production and distribution network along the Hume Highway can help the whole hydrogen industry become viable in Australia. We know the Hume is the busiest truck route in Australia and once the major logistics companies know there will be guaranteed supply of hydrogen at a commercially viable price, it will provide even greater confidence to accelerate the transition of their fleets.'' 

H2FA Managing Director Francesco Ceravolo: "What this partnership aims to create, for the first time in Australia, is to deliver green hydrogen production and distribution at scale. We believe green hydrogen is necessary to decarbonise heavy freight and ultimately lead to the complete displacement of diesel for green hydrogen."