The Western Australian Labor government will inject a total of $ 61.5 million into the state’s renewable hydrogen industry in a bid to accelerate the transition to a low-carbon future.
Premier Mark McGowan announced the initiative ahead of this week’s state budget to advance a local hydrogen production industry and stimulate local demand.
The funding will include a $ 50 million pool to stimulate demand in transportation and industrial environments, and $ 11.5 million for the development of a renewable energy hub at a 64 square kilometer site in Oakajee, north of Geraldton.
The new site is considered ideal for the production of green hydrogen due to its wind and solar conditions.
The Labor Party fundraiser is keeping its campaign promise to build an access road into the Oakajee industrial zone and revive the precinct.
Mr McGowan said hydrogen offers “incredible potential” for the state and could potentially take place alongside iron ore and liquefied natural gas (LNG) as a major export commodity.
“Countries like Korea, Japan and China will need renewable energy as a carbon-free fuel source in the future and WA is uniquely positioned to provide them,” he said.
Renewable Hydrogen Fund
The government will also provide an additional $ 1 million in grants to the Renewable Hydrogen Fund designed to support capital projects and feasibility studies across Western Australia that are helping the industry grow. .
Since its launch in 2019, the fund has made more than $ 10 million available for industry-led studies to harness local renewable resources, including technologies and capabilities to support the transport of renewable hydrogen. .
McGowan said the export of renewable hydrogen to countries heavily dependent on imported energy supplies represents a significant economic opportunity for the state.
“[This fund] leverages our renewable energy potential, technical expertise and global reputation to further position Western Australia as a key player in the future energy mix, ”said Mr. McGowan.
“We will seek to develop our national production capabilities and downstream processing opportunities and the means to generate local content, so that WA suppliers are in the box to capitalize on the potential of hydrogen.”
Perth-based Global Energy Ventures (ASX: GEV) is one of three recipients of the latest round of feasibility grants approved under the Renewable Hydrogen Fund.
The company received $ 300,000 to assess the technical and commercial feasibility of exporting green hydrogen to Asia-Pacific using its proprietary compressed hydrogen shipping solution.
The study is part of the HyEnergy project and includes the partners of the Province Resources (ASX: PRL) joint venture and the French independent power producer Total Eren.
It aims to provide partners with sufficient confidence to justify the selection of compressed hydrogen as the preferred export method in the next engineering phase of the project.
Talk with LowercaseMartin Carolan, CEO of Global Energy, said the funding was “strong recognition” of the value to be derived from a marine compressed hydrogen supply chain.
“State government support is important as we will be the first to export green hydrogen from the coast of Western Australia,” said Carolan.
“This funding will make an important contribution to the completion of a feasibility study for HyEnergy, which could become one of the best hydrogen export projects by scale in the world.”
He said the study is expected to generate considerable exposure for Global Energy as it is supported by Total Eren, which is seen as a renewable energy powerhouse.
The feasibility is expected to be completed in the first half of 2022.