Front-end engineering and design has started at a hydrogen production development, as the federal government chips in $70 million to the BP Australia project.

November 17, 2023

West Australia’s hydrogen production industry has taken another step forward, with a project south of Perth reaching an engineering and design milestone.

The federal government has promised $70 million to the H2Kwinana Hydrogen Hub, which it says will help to decarbonise WA’s industrial sector by lowering emissions.

Climate Change and Energy Minister Chris Bowen said renewable hydrogen was a “game changer for green manufacturing”.

“It opens the door to green metals, green fertiliser, and green chemicals – products the world increasingly needs through the net zero transformation,” he told an energy transition summit in Perth on Friday.

Mr Bowen said Australia had hydrogen projects in the pipeline that were worth about $200-$300 billion.

“By 2050, Australia’s hydrogen industry could generate $50 billion in additional GDP and create over 16,000 jobs, as well as an additional 13,000 jobs from the construction of renewable energy infrastructure to power the production of green hydrogen,” he said.

“These projects are the next step towards using locally produced renewable hydrogen in Australia to reduce our industrial emissions and develop a renewable export future.”

The funding pledge for the BP Australia H2Kwinana Hydrogen Hub comes as the development enters front-end engineering and design.

Construction is expected to be completed by mid-2027, with site works already underway.

Premier Roger Cook said “clean” hydrogen could be WA’s next big industry and support thousands of jobs.

“It is fantastic the state and federal governments have been able to get behind H2Kwinana to drive renewable hydrogen,” he said.

When operational, the H2Kwinana Hydrogen Hub could produce more than 14,000 tonnes of green hydrogen per annum for industrial use and heavy transport – the equivalent of fuelling around 750 heavy vehicles per year.

It involves the installation of hydrogen storage, compression and truck loading facilities and upgrades to the existing on-site hydrogen pipeline system.

It could also include a 100 MW electrolyser, with the potential to expand to a total of 1.5 GW production.