BP, Origin Energy push ahead with green hydrogen plans
BP said production of green hydrogen and ammonia using renewable energy is technically feasible at scale in Australia.
The prospect of green hydrogen and ammonia developments in Australia has received a boost after energy giant BP and Origin Energy moved ahead with separate deals for the clean fuel.
BP said production of green hydrogen and ammonia using renewable energy is technically feasible at scale in Australia with plans for a project in Western Australia’s mid-west under consideration.
The UK oil giant is now weighing up customer demand and business models required for a successful development while noting sizeable infrastructure would be needed and production at significant scale to be commercially viable.
“This study confirms the potential for scaled-up green hydrogen in Western Australia. This looks particularly promising in the mid-west of WA, which has existing infrastructure, access to land and abundant renewable energy resources such as wind and solar,” BP Australia president Frederic Baudry said. “Importantly, our study also confirmed strong demand from potential customers in the hard-to-abate sectors, and for both local and export markets. This has the potential to position Australia as a regional powerhouse of the energy transition.”
The study investigated the hydrogen supply chain and both domestic and export markets for a pilot scale project of 4,000 tonnes of hydrogen making up to 20,000 tonnes of ammonia and commercial scale at 200,000 tonnes of hydrogen making up to 1 million tonnes of ammonia.
A giant $100bn renewable energy hub producing green hydrogen and ammonia has already been proposed in Western Australia with the facility in line to be of the world’s biggest clean fuels projects should it proceed.
Green hydrogen taps renewable energy sources to split hydrogen from water which can then be transported as ammonia both within Australia and overseas.
Origin Energy also signed a deal with the world’s biggest LNG carrier, Mitsui O.S.K Lines to work on developing the supply chain for export-scale green ammonia in Australia.
The memorandum of understanding will look at how green ammonia projects could supply downstream markets from 2026. A joint feasibility study will be completed by December 2021.
“Transport is one of the biggest opportunities globally to achieve emissions abatement through the use of green and renewable fuels such as hydrogen and ammonia,” Origin’s general manager of future fuels, Tracey Boyes, said.
Origin is also working on a giant green hydrogen and ammonia plant in Tasmania’s Bell Bay with first production targeted by 2025.
The moves follow the creation of seven hydrogen hubs by Scott Morrison 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 some of the biggest 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 and a top-three exporter of the fuel to the Asian markets.
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