Proposed $1bn hydrogen facility to support 2000 WA construction jobs

Western Australia will soon be home to one of the world’s largest clean energy facilities as Woodside unveils its plans to build a global-scale hydrogen and ammonia production facility named H2Perth. 

“The H2Perth facility is a great example of the type of renewable energy projects we want to bring to Western Australia. 

“Making hydrogen more affordable will accelerate the uptake of clean energy, and help our State move towards a renewable energy future and net-zero by 2050,” Premier Mark McGowan said. 

The proposed facility is going to be built on a 130-hectare site within the Kwinana Strategic Industrial Area and Rockingham Industry Zone that was commercially leased from the State Government. 

The first phase of the project will have a capital expenditure of more than $1 billion. 

“The land being leased from the State Government in the Kwinana and Rockingham areas is ideally located close to existing gas, power, water and port infrastructure, as well as a skilled local residential workforce. 

“These advantages will make a huge difference to cost of supply and schedule and help H2Perth deliver competitively priced hydrogen to customers,” Woodside CEO Meg O’Neill said. 

H2Perth aims to produce low cost, low carbon hydrogen-based energy for customers as well as stimulate and enable the increase in renewable power generation in the State. This project will support the Western Australian Government’s priorities to create a strategic industry and local manufacturing. 

The project is going to be developed in phases and once the facility is at full production capacity, it will be able to produce up to 1,500 tonnes of hydrogen a day that will be exported in the form of ammonia and liquid hydrogen. 

“Building in this location is not just about hydrogen, H2Perth will also facilitate substantial growth of renewables in Western Australia by providing to the grid a flexible and stabilising load that benefits uptake of intermittent renewable electricity by households and local industry. We will also be supporting local manufacturing jobs and opportunities. 

“H2Perth is designed to be net-zero emissions for both Woodside and its customers, supporting Woodside’s corporate emissions reduction targets and the Paris Agreement goals of customers in the region. 

“We look forward to H2Perth establishing Western Australia as a global hydrogen leader, building on our state’s existing resources and capabilities and helping lead us into a lower-carbon future – something everyone can be proud of,” Ms O’Neill said. 

In addition, the construction of the new facility aligns with several of the State Government’s initiatives such as the Western Australian Renewable Hydrogen Strategy and Roadmap, the Diversify WA Economic Development Framework, the WA Recovery Plan as well as the development of the Western Trade Coast. 

“The scale of this project will help secure the local manufacture of critical components, and will underpin an expansion of renewable energy on the South West Interconnected System,” Hydrogen Industry Minister Alannah MacTiernan said. 

“This announcement from Woodside is a clear example of how the WA Government can use strategic industrial areas in the State to fuel our renewable energy future,” Lands Minister Tony Buti said. 

Supporting these initiatives will help stimulate local hydrogen demand, most especially in the transport sector and local heavy industry. The project also has the potential to enable local refuelling stations to be built independently of the project’s export timelines and be operational as early as 2023 – subject to approvals and customer demand. 

Construction of H2Perth is anticipated to create over 2,000 jobs and a further 200 ongoing local jobs once the facility is up and running. 

“Not only will Woodside’s new facility create more jobs for Western Australians, H2Perth will help revolutionise energy consumption in our State. 

“The project is laying the foundation for the production of renewable hydrogen in Western Australia, and will continue to contribute significantly to diversifying the State’s economy,” State Development, Jobs and Trade Minister Roger Cook said. 

Source: Government of Western Australia – Media Statements; Woodside – Media Centre; Reuters; Renew Economy