Giant $100bn renewable energy hub proposed for Western Australia

A giant renewable energy hub has been proposed for Western Australia, with the facility in line to be one of the world’s largest clean fuel projects

The $100bn green hydrogen and ammonia hub would equal the output of Australia’s entire market. Picture: Thinkstock

A giant $100bn renewable energy hub producing green hydrogen and ammonia has been proposed in Western Australia, with the facility in line to be one of the world’s largest clean fuel projects should it proceed.

The Western Green Energy Hub would cover 15,000 sq km across the Goldfields-Esperance region in the state’s south-east and could produce up to 50 gigawatts of wind and solar power, nearly equal to the entire capacity of Australia’s national electricity market.

The project is backed by InterContinental Energy and CWP Global, the same duo that saw a $48bn wind and solar farm in WA’s Pilbara knocked back by federal Environment Minister Sussan Ley less than a month ago.

The Western Green Hub will be built in phases to produce up to 3.5m tonnes of zero-carbon green hydrogen or 20m tonnes of green ammonia each year, with first production by about 2030. The Mirning Traditional Lands Aboriginal Corporation – a special purpose vehicle used by traditional owners – is also a partner with InterContinental and CWP in the consortium.

Hydrogen would be supplied both domestically and also for overseas customers, in the latest in a growing list of energy developments targeting an expected boom in demand from Asian buyers.

“Green fuels produced at the site will meet massive future demand from multiple sectors, including in co-firing in power generation, the shipping sector, heavy industry such as steel, chemicals and mining, as well as the aviation sector,” the consortium said. “The green hydrogen sector is predicted to become a US$2.5 trillion market by 2050.”

The project would represent the single largest energy hub in the world, according to legal firm Norton Rose Fulbright, which advised the consortium on the deal.

“Its 50GW of renewable generation is just under the entire installed generation on the east coast of Australia,” said Norton Rose Fulbright co-head of energy, infrastructure and resources in Australia Paul Lingard. “The close to $100bn in development costs will make it one of the largest projects in Australia’s history.”

The Asian Renewable Energy project, which would cover an area 10 times the size of Singapore, was rejected on concerns the facilities and brine from a desalination plant would pose a “catastrophic” risk to one of the world’s most important migratory bird habitats.

The project was designed to include 1753 wind turbines and up to 10,800 megawatts of solar capacity, spread over a total area of more than 660,000 hectares.

The project follows the creation by Prime Minister Scott Morrison of seven hydrogen hubs spanning the industrial heartlands of the Hunter Valley, Victoria’s Latrobe Valley and South Australia’s Whyalla through to Western Australia’s Pilbara. The hubs aim to crystallise billions of dollars of investment pledged by high-profile ASX-listed companies, private investors and international energy names.

Australia is pinning its hopes on a slew of hydrogen hubs – backed by some of the nation’s biggest renewable investors – as part of a technology-led solution to reach net-zero emissions, without yet providing a timeline for reaching that goal. Australia is targeting becoming a global hydrogen player by 2030.

Originally published as Giant $100bn renewable energy hub proposed for Western Australia