entX has been granted approval to look at the feasibility of storing hydrogen underground

A potentially large hydrogen project near Elliston in regional South Australia will examine the feasibility of storing the gas underground in engineered salt caverns.

A view of an oil well drilling rig.

Clean energy company entX has been granted a gas storage exploration licence in South Australia’s Far West, as it seeks to develop a major hydrogen project which will store the gas underground for later use.

The company, formerly known as PhosEnergy, is aiming to develop a multi-billion dollar hydrogen precinct based around Elliston on the western coast of the Eyre Peninsula.

The project aims to produce green hydrogen, and store it underground in salt caverns in the Polda Basin, about 1km below the surface.

Managing director Bryn Jones said the Basin had been identified by Geoscience Australia as one of Australia’s pre-eminent sedimentary basins suitable for the storage of hydrogen in deep, engineered salt caverns.

“The opportunity associated with green hydrogen developments overlying deep salt structures provides an unprecedented level of opportunity for the development of a multi-generational new clean energy sector for the region,’’ Mr Jones said. “The storage capability of salt caverns is globally recognised and will form the foundation of entX’s planned $4.5 billion renewable energy production precinct centred around the township of Elliston, 170km northwest of Port Lincoln on South Australia’s Eyre Peninsula”.

entX said it was fully-funded to undertake exploration activities over the coming years and will also start a project feasibility study to allow a full assessment of the Western Eyre Green Hydrogen to Ammonia and Methanol (WEGHA) concept.

This study will include all the necessary upstream renewable energy generation requirements and downstream energy processing infrastructure to allow the production and storage and potential export of green hydrogen, green ammonia and methanol, the company said. The company expects to make a final investment decision on the project in early 2025.

entX is an unlisted public company with investments in a portfolio of technologies across clean energy and advanced manufacturing areas such as space and defence.

It is also developing a 40MW green hydrogen production facility for Kimberly-Clark Australia’s Millicent Mill in the state’s south east.

That project aims to initially blend a 20 per cent hydrogen mix into the natural gas feed at the Kimberley Clark paper products mill with a view to eventually increasing that to 100 per cent.

Minister for Mining and Energy Tom Koutsantonis said the State Government’s own $593m hydrogen hub project, to be based at Whyalla, was providing momentum for companies such as entX to embark on new projects.

“These projects not only provide the foundation to assist in the transition towards a low carbon economy, but also provide sustainment and growth for new jobs and major infrastructure investment across regional economies,’’ he said.