Woodside plans hydrogen export project in Australia

Australian independent Woodside Petroleum today announced plans to develop a hydrogen project south of Perth, Western Australia (WA), known as H2Perth, with production of up to 1,500t/d of hydrogen for export through ammonia and liquid hydrogen shipments.

First output is planned for 2023.

Initially, H2Perth will target 300t/d of hydrogen production, or 20pc of expected total capacity, which can be converted into 600,000t/yr of ammonia or 110,000t/yr of liquid hydrogen, Woodside said. The firm is in discussions with potential offtakers in Perth, Japan, Singapore, South Korea, and Germany, a Woodside spokesperson said.

The firm is also in discussion with a number of European electrolyser manufacturers, but the amount it will spend on the electrolysers and H2Perth remains confidential, it said.

Woodside expects the cost of electrolyser to fall significantly in the coming years, it said. Future expansion of H2Perth is being timed to capitalise on lower future electrolyser costs and lower renewable energy costs, the Perth-based firm added.

Woodside may use a mix of polymer electrolyte membrane (PEM) and alkaline electrolysers among the total electrolyser capacity of 3,250 MW, it said. Hydrogen and ammonia from H2Perth would be produced using both electrolysis technologies and natural gas reforming, with 100pc of the greenhouse gas (GHG) emissions abated or offset, Woodside said.

The electrolysis component of H2Perth's production will have an initial capacity of 250 MW, with the potential to increase to 3,250 MW alongside customer demand and renewable energy growth, it said.

The initial phase of the steam methane reformer will consume 40 TJ/d (1.07mn m³/d) of natural gas, the firm said. If the H2Perth project is expanded to 1,500 t/d, more renewable energy will need to be installed to meet expected power demand. The current registered power generation capacity of WA's entire South West Interconnected System (SWIS) — which covers Perth and the region south of the city — is 5,800 MW, Woodside said.

Hydrogen electrolysers can help stabilise this network because they can be operated flexibly by being switched on and off quickly, it said. "This can help the network support more intermittent renewable power, such as residential rooftop PV and large-scale renewable generation, as the state transitions to greener electricity," Woodside said.

Hydrogen exports from H2Perth will start in the second half of the decade and domestic demand is largely expected to come from transportation, with the WA state government encouraging the development of local hydrogen refuelling plants that could operate from around 2023, the firm said.

Woodside has other hydrogen ventures, including a consortium of Japanese firms to study the development of an ammonia supply chain between Australia and Japan. It has another in South Korea to construct and operate hydrogen refuelling stations to service public buses in South Korea.

The firm signed a heads of agreement (HOA) with Japanese trading house Marubeni to study the production and export of ammonia from hydro power sources in the Australian island-state of Tasmania.

Woodside is the operator of the 16.3mn t/yr North West Shelf (NWS) LNG venture and the 4.3mn t/yr Pluto LNG venture, which are both located offshore WA.

By Kevin Morrison