Posted on 20 Feb 2024
The federal and Western Australian governments on Monday announced an AUD 140 million ($92m) investment to build a hydrogen hub in Pilbara, Western Australia.
Set to be a “major centre” for clean hydrogen production and export, the hub can potentially become an “international gateway” to green steel and iron made in Australia, the governments said in a statement seen by Kallanish.
The hub’s construction will start this year, with operations expected to start in mid-2028, supporting 1,000 direct and indirect jobs. The project is anticipated to have a production capacity of roughly 492,000 tonnes/year, enough to power 26,000 heavy vehicles annually.
The federal and state governments have each committed AUD 70m to the project to help build infrastructure to support both hydrogen exports and renewable energy production. This includes a hydrogen and/or ammonia pipeline between Maitland and Burrup Strategic Industrial areas, as well as the upgrade of key infrastructure at Lumsden Point (Port Hedland). Original planning estimated up to 5 gigawatts of renewable energy production capacity.
The funding will also support a clean energy training and research institute, which will provide training in renewable energy and hydrogen for Pilbara residents.
Western Australian premier Roger Cook says the hub is a key part of his government’s aim to turn Western Australia into a “global clean energy powerhouse.”
“When it comes to producing and exporting world-leading products at a global scale, WA leads the way,” the premier notes. “This project will be WA-produced hydrogen on Asia’s doorstep, helping to strengthen and diversify our economy for the future.”
Chris Bowen, the country’s minister for climate change and energy adds: “WA is already a global mining and export powerhouse, and it’s now primed to become a world-leading hydrogen supplier as well.”
The federal government funding is part of an AUD 500 million regional hydrogen hubs program, which seeks to establish hydrogen hubs in regional centres including Gladstone, Bell Bay, Kwinana, Port Bonython and the Hunter. The hubs are expected to lower production costs, encourage innovation, and improve efforts in skills and training.
Last month, the federal government announced AUD 70m each in funding for hydrogen hubs in Townsville (Queensland) and Bell Bay (Northern Tasmania).
The government predicts Australia’s hydrogen industry to generate an additional AUD 50 billion in GDP by 2050, creating over 16,000 jobs in regional Australia and a further 13,000 jobs from the development of renewable energy infrastructure.
Source:Kallanish
