Woodside collaborates to drive development of local hydrogen market

Woodside Energy, BGC and Centurion, with the support of the Western Australian Government, are advancing plans for a proposed self-contained hydrogen production, storage and refuelling station, located in the Rockingham Industry Zone.

Woodside has announced that the project was successful in the Expressions of Interest stage of the Department of Jobs, Tourism, Science and Innovation’s $10 million Hydrogen Fuelled Transport Program. The program aims to accelerate the uptake of hydrogen-fuelled transport, build local skills and capability, and stimulate local hydrogen production.

With matched funding from Woodside, the proposal targets delivery of hydrogen fuel at a globally competitive price of $11 per kilogram and subsidises a number of large hydrogen fuel cell electric vehicles.

Named the Hydrogen Refueller @H2Perth, the project would be located adjacent to Woodside’s proposed H2Perth project, a proposed domestic and export-scale hydrogen and ammonia production facility.

The Hydrogen Refueller @H2Perth aims to:

• supply low cost, renewable hydrogen fuel for local customers
• stimulate and enable hydrogen demand in Western Australia
• support state government objectives for hydrogen to be a significant fuel source for transportation by 2030.
   

Hydrogen is proposed to be produced using a 2 MW electrolyser, powered by renewable energy sourced from the South West Interconnected System. Production will be timed to occur during periods of excess solar in the grid and stored on-site. Where needed, Woodside will also use Renewable Energy Certificates.

Initially, Woodside is targeting production of 235 kg per day of hydrogen at the Hydrogen Refueller @H2Perth, with the potential to scale up to a targeted 800 kg per day.

Hydrogen Refueller @H2Perth will be available to industrial customers, as well as the public. Through the program, hydrogen is targeted to be made available at a globally competitive price of $11 per kilogram for a 10-year period.

Woodside has signed a conditional, non-binding offtake memorandums of understanding (MoU) stating its intention to supply hydrogen from Hydrogen Refueller @H2Perth to:

• BGC, which intends to buy and operate five to 10 hydrogen concrete agitator trucks
• Centurion, which intends to buy and operate two hydrogen prime movers. It is envisaged the grant will support BGC and Centurion with purchasing the vehicles to replace large diesel trucks currently in use. Woodside also proposes to lease a small fleet of Hyundai Nexo vehicles which are to be refuelled at the facility.
   

The grant will also support Woodside’s operation of the facility to be able to offer hydrogen at the targeted price.

Woodside Energy CEO Meg O’Neill said the Hydrogen Refueller @H2Perth demonstrated Woodside’s support for the continued development of Western Australia’s hydrogen market.

“The proposed refuelling facility would deliver on our commitment to make low-cost, lower-carbon, hydrogen-based energy available to local customers, while also progressing export opportunities such as H2Perth,” she said. “We don’t just need new sources of energy, we need an entirely new and integrated supply chain for successful energy transition.

“I would like to acknowledge and commend the Western Australian Government on its efforts to encourage the development of a home-grown hydrogen industry.”

Woodside will continue to progress design work and engagement with relevant regulatory bodies. Subject to necessary commercial arrangements and regulatory approvals, including securing land tenure, Woodside is aiming to start up the Hydrogen Refueller @H2Perth in 2024.

Image: H2Perth. Source: Woodside Energy.