WA to Build $140 Million Hydrogen Hub in 2024

‘This hub will bring a new clean energy industry to the Pilbara, supporting the region’s world-class industries well into the future,’ said energy minister.
WA to Build $140 Million Hydrogen Hub in 2024
The Green Hydrogen Plant built by Spanish company Iberdrola in Puertollano, Spain, on April 18, 2023. (Valentin Bontemps/AFP via Getty Images)
Alfred Bui
2/19/2024
Updated:
2/19/2024
0:00

A $140 million (US$91 million) hydrogen hub will be built in Western Australia (WA) in a move to turn the state into a global hydrogen powerhouse.

On Feb. 19, the federal Labor government announced that it had struck a deal with the WA government to build the hub in the Pilbara region.

The facility will serve as a major centre for hydrogen production and export, with an estimated production capacity of 492,000 tonnes per year.

The government also said the hub could become an international gateway for Australian-made “green” steel and iron.

“This hub will bring a new clean energy industry to the Pilbara, supporting the region’s world-class industries well into the future,” said Energy and Climate Change Minister Chris Bowen.

“WA is already a global mining and export powerhouse, and it’s now primed to become a world-leading hydrogen supplier as well.”

Likewise, WA Premier Roger Cook said the hub would solidify the state’s status as a key producer of “world-leading” products.

“This project will be WA-produced hydrogen on Asia’s doorstep, helping to strengthen and diversify our economy for the future,” he said.

The $140 million investment will be split evenly between the federal and WA governments, and used to build infrastructure to support the production and export of hydrogen as well as fund research activities.

Road and intersection construction will commence in 2024, with the project expected to be operational by mid-2028.

The government said the project would support 1,000 direct and indirect jobs and provide training in renewable energy for local people, including the Indigenous community.

Meanwhile, Friends of Australian Rock Art, a rock art protection group, has called on the government to disclose the facility’s exact location.

The group was concerned that the huge hydrogen hub would pose risks to ancient Murujuga rock art in the region and undermine the prospect of the Burrup Peninsula becoming a World Heritage-listed site.

The project was part of the Labor government’s ambitious plan to turn Australia into a global leader in green hydrogen.

According to government data, over 100 hydrogen projects were announced across Australia in 2022, more than double the number of projects in the previous year.

It was forecasted that the hydrogen industry could contribute $50 billion to the economy, and create more than 16,000 jobs in regional areas by 2050.

Hydrogen Project in the Northern Territory

The federal government’s announcement comes just one month after the Northern Territory government awarded major project status to a hydrogen hub in Darwin.

The project is being developed by a joint venture between French energy giant TotalEnergies and EREN, with a production capacity of 80,000 tonnes of hydrogen per year.

The Northern Territory government said the hydrogen hub would help the state reduce its carbon emissions while supporting hundreds of jobs during its construction and operation phases.

The hydrogen produced at the facility will be used for domestic consumption and international export.

Monica O’Shea contributed to this article.
Alfred Bui is an Australian reporter based in Melbourne and focuses on local and business news. He is a former small business owner and has two master’s degrees in business and business law. Contact him at [email protected].
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