APA and WesCEF are undertaking a feasibility study to assess the viability of large-scale production and transportation of renewable hydrogen to WesCEF’s ammonia production facilities at the Kwinana Industrial Area south of Perth, via the southern section of APA’s existing Parmelia Gas Pipeline (PGP).
The study builds upon the completion of a pre-feasibility study by the Project Partners in 2023. This feasibility study will test the viability of producing and transporting hydrogen using existing pipeline infrastructure from a large-scale hydrogen production facility.
The project offers the opportunity to deliver cost-effective large scale green hydrogen to Kwinana – a land-constrained established industrial precinct – and creates optionality for hydrogen use in industry decarbonisation and growth.
The Project focuses on the production of green hydrogen via electrolysis using variable renewable energy (VRE). The feasibility study for the project will assess technical, commercial and strategic viability of the Project by:
- Identifying a project configuration based on preferred variable renewable energy sites and Hydrogen Production Facility (HPF) locations, as well as water supply and wastewater discharge options. This includes an assessment of scale potential, land tenure / approvals risk, design and technology constraints, cost factors, etc.
- Evaluating additional offtake opportunities for hydrogen output of the project that can be utilised in the Kwinana Industrial Area in order to optimise the sizing of the HPF and VRE sites and provide maximum benefit to the area.
- Identifying and conducting early engagement with relevant stakeholders in relation to land tenure, regulatory and approvals pathway and developing mitigation strategies for outstanding risks.
On an overall basis, the multistage Project is expected to:
- Demonstrate the technical requirements and economics of green hydrogen production, pipeline transportation and offtake for industrial use;
- Improve understanding of the technical and commercial feasibility of large-scale electrolyser deployments;
- Develop a regulatory and approvals pathway for the deployment of greenfield hydrogen projects in WA; and
- Improve understanding of the market for renewable hydrogen in Kwinana Industrial Area through assessment of a variety of potential offtakes.
The project aims to demonstrate how existing natural gas assets (i.e. APA’s Parmelia Gas Pipeline and WesCEF’s Ammonia facility) can support the energy transition.
The project will also offer opportunities for the local workforce to upskill in renewable hydrogen generation, design and operation.
If hydrogen is to replace natural gas in green industrial applications, it must be both renewable and transportable. Is a big piece of the jigsaw already in place?