Woodside to drive development of local hydrogen market
Woodside Energy, BGC and Centurion, with the support of the Western Australian Government, are advancing plans for a proposed self-contained hydrogen production, storage and refuelling station, located in the Rockingham Industry Zone. The project was successful in the Expressions of Interest stage of the Department of Jobs, Tourism, Science and Innovation’s A$10 million Hydrogen Fuelled Transport Program. The Program aims to accelerate the uptake of hydrogen fuelled transport, build local skills and capability, and stimulate local hydrogen production.
With matched funding from Woodside, the proposal targets delivery of hydrogen fuel at a globally competitive price of A$11 per kilo and subsidises a number of large hydrogen fuel cell electric vehicles. Named the Hydrogen Refueller @H2Perth, the project would be located adjacent to Woodside’s proposed H2Perth project, a proposed domestic and export-scale hydrogen and ammonia production facility. The Hydrogen Refueller @H2Perth aims to:
• supply low cost, renewable hydrogen fuel for local customers;
• stimulate and enable hydrogen demand in Western Australia; and
• support State Government objectives for hydrogen to be a significant fuel source for transportation by 2030.
Hydrogen is proposed to be produced using a 2-megawatt electrolyser, powered by renewable energy sourced from the South West Interconnected System. Production will be timed to occur during periods of excess solar in the grid and stored on-site. Where needed, Woodside will also use Renewable Energy Certificates.
Initially, Woodside is targeting production of 235 kilograms per day of hydrogen at the Hydrogen Refueller @H2Perth, with the potential to scale up to a targeted 800 kilograms per day. Hydrogen Refueller @H2Perth will be available to industrial customers, as well as the public. Through the Program, hydrogen is targeted to be made available at a globally competitive price of A$11 per kilogram for a 10-year period.
Woodside has signed conditional, non-binding offtake Memorandums of Understanding (MoU), stating its intention to supply hydrogen from Hydrogen Refueller @H2Perth to:
• BGC, which intends to buy and operate five to ten hydrogen concrete agitator trucks; and
• Centurion, which intends to buy and operate two hydrogen prime movers.
It is envisaged the grant will support BGC and Centurion with purchasing the vehicles to replace large diesel trucks currently in use. Woodside also proposes to lease a small fleet of Hyundai Nexo vehicles which are to be refuelled at the facility.
The grant will also support Woodside’s operation of the facility to be able to offer hydrogen at the targeted price.
Woodside Energy CEO Meg O’Neill said the Hydrogen Refueller @H2Perth demonstrated Woodside’s support for the continued development of Western Australia’s hydrogen market.
“The proposed refuelling facility would deliver on our commitment to make low cost, lower-carbon hydrogenbased energy available to local customers, while also progressing export opportunities such as H2Perth.
“We don’t just need new sources of energy, we need an entirely new and integrated supply chain for successful energy transition. “I would like to acknowledge and commend the Western Australian Government on its efforts to encourage the development of a homegrown hydrogen industry,” she said.
Ms O’Neill also thanked BGC and Centurion for their support in progressing Hydrogen Refueller @H2Perth.
BGC CEO Daniel Cooper said the initiative would be important to the future of mainstream hydrogen uptake in WA.
“BGC welcomes the opportunity to work with Woodside, Centurion and the State Government to progress the energy innovations needed to keep our industries powered into the future.
“We look forward to assessing the performance of these vehicles and sharing our learnings broadly to build the case for wider deployment.” Centurion CEO, Justin Cardaci, said that as one of Australia’s largest independently owned and operated logistics and transport companies, it was crucial for the company to support the development of transport
sector related technology.
“Transport and logistics is an emissions intensive sector and it is incumbent on businesses like ours to actively participate in the energy transition and the journey towards a net-zero emissions future”, Mr Cardaci said.
“The investment by the WA Government and Woodside in hydrogen refuelling technology is a material step for companies like ours to accelerate the use of renewable fuel in the transport sector to transition its sustainability pathway.”
Woodside will continue to progress design work and engagement with relevant regulatory bodies. Subject to necessary commercial arrangements and regulatory approvals, including securing land tenure, Woodside is targeting start-up at the Hydrogen Refueller @H2Perth in 2024.
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