ARENA funds WA renewable hydrogen study

The Australian Renewable Energy Agency (ARENA) has announced that it is providing $1.3 million to APA Group (APA) and Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) for the $3.5 million ‘Parmelia Green Hydrogen Project – Feasibility Study’ in Western Australia, to investigate producing and transporting renewable hydrogen through an existing natural gas pipeline south of Perth.

The study will progress investigations into the development of a large-scale renewable hydrogen production facility supported by purpose-built renewable generation south of Kwinana, WA. The hydrogen would be transported via a 43 km section of APA’s existing Parmelia Gas Pipeline to WesCEF’s ammonia production facilities at the Kwinana Industrial Area south of Perth.

WesCEF currently manufactures ammonia from natural gas, and the renewable hydrogen produced by this project has the potential to reduce overall emissions from the facility.

The project follows APA’s work investigating the technical feasibility of its Parmelia Gas Pipeline to transport hydrogen gas, which has found that it is technically feasible to operate the southern 43 km portion of the pipeline with 100% hydrogen.

Renewable hydrogen will play a key role in Australia’s journey to net zero, by enabling hard-to-abate industries like metals and chemicals production to substantially reduce their emissions.

The feasibility study will help improve understanding of developing large-scale renewable hydrogen projects in Australia as well as the technical requirements and economics of transporting renewable hydrogen via pipelines.

ARENA CEO Darren Miller said the feasibility study is a step forward for renewable hydrogen in Western Australia.

“The decarbonisation of the industrial sector is critical to progressing Australia’s 2030 and 2050 net zero targets. Renewable hydrogen will be vital to cutting emissions in heavy industries like ammonia production and will be hugely important in industrial centres like Kwinana,” he said. “This feasibility study will tell us more about what it takes to develop a renewable hydrogen industry in Western Australia and ARENA will play an active role in sharing those lessons with the market.

“APA is already leading in this space with their work on pipeline conversion and ARENA is confident in backing them and WesCEF in this investigation.”

Since 2017, ARENA has committed over $315 million to 48 renewable hydrogen projects spanning early-stage research through to first-of-a-kind deployments including hydrogen refuelling and hydrogen trucks, hydrogen for producing renewable ammonia, hydrogen for use in alumina refining and remote power.

In October, ARENA opened applications for the $2 billion Hydrogen Headstart program, which aims to support renewable hydrogen production by bridging the gap between the cost of producing renewable hydrogen and the market price.

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