H2Perth: Woodside Petroleum unveils grand plan for world-scale hydrogen and ammonia plant at Kwinana

Woodside Petroleum has won State Government support for a potential $1 billion hydrogen plant, just two weeks after WA was lambasted by billionaire Andrew Forrest for supposedly dithering in its pursuit of clean energy investments.

Depending on demand from customers, the plant would be built in stages on 160ha of industrial land in Kwinana and Rockingham leased from the Government, with construction starting as early as 2024.

The venture, dubbed H2Perth, is one of a number of proposals floated by Woodside as it seeks to underline its clean energy credentials ahead of the go-ahead for its $16 billion Scarborough gas project, off north-west WA.

H2Perth would produce up to 1500 tonnes a day of hydrogen in the form of ammonia and liquid hydrogen, predominantly for export markets, but also for local transport and heavy industries seeking cleaner fuel.

While Premier Mark McGowan said the project would generate “clean and green” hydrogen, most of the initial hydrogen would be so-called blue-hydrogen, tapping gas in the production process and emitting Co2 that would be abated or offset. But Woodside will also produce cleaner green hydrogen from electrolysis powered by renewable energy generated by solar power through the South West electricity grid.

Earlier this month, Mr Forrest accused the Government of dragging its feet on decarbonisation after revealing his Fortescue Metals Group’s Fortescue Future Industries business had opted to build its first green hydrogen energy project in Queensland instead of WA.

Hydrogen Industry Minister Alannah MacTiernan said on Monday WA had “provided information on available industrial sites ... including in the Rockingham/Kwinana strategic industrial areas” to FFI for its green hydrogen project, but the company “chose not to pursue these opportunities”.

“We expect FFI will be pursuing many other projects in WA,” Ms MacTiernan said.

Woodside chief executive Meg O’Neill said the group had looked over several sites before opting for the Kwinana/Rockingham hub based on its proximity to existing gas, power, water and port infrastructure, and a skilled local workforce.

“These advantages will make a huge difference to cost of supply and schedule and help H2Perth deliver competitively priced hydrogen to customers,” Ms O’Neill said.

“H2Perth will also facilitate substantial growth of renewables by providing to the grid a flexible and stabilising load that benefits uptake of intermittent renewable electricity by households and local industry.”

The Conversation Council of WA, which is opposed to the Scarborough development, said H2Perth suggested Woodside was not serious about green hydrogen. “On closer inspection it appears to be yet another way for Woodside to greenwash its highly polluting fossil gas expansion plans,” policy and legal director Piers Verstegen said.

Woodside said H2Perth will also drive growth in renewables in WA by providing to the grid a flexible and stabilising load “that benefits uptake of intermittent renewable electricity by households and local industry”.

“It will be produced using a range of methods, but in particular using electricity off the grid that is produced by people’s solar panels,” Mr McGowan said.

“This plant will be a giant battery, it will take power from the grid produced by people’s solar panels, convert it to hydrogen and then allow it to be exported or used locally as a completely renewable fuel source that produces no carbon emissions.”

Ms O’Neill said hydrogen could be exported as ammonia or liquid hydrogen or used in the domestic market.

“There’s a huge opportunity to convert buses and trucks to burn cleaner fuel in liquid hydrogen,” she said.

“The investment will be phased over time as customer demand grows, but we see a number of opportunities.”