Western Australia plans extra funds for renewable hydrogen
The Western Australian (WA) government will invest an additional A$61.5mn ($45.8mn) in the state’s renewable hydrogen industry, it said on September 7.
A new $50mn fund, included in the government's 2021-22 budget, will be used to stimulate local demand for renewable hydrogen in transport and industrial settings and to drive investment into renewable hydrogen.
The 2021-22 budget includes funding to develop and upgrade infrastructure at the Oakajee Strategic Industrial Area (SIA) to establish a renewable hydrogen hub in the Mid-West.
An additional A$4mn will be directed towards developing the plan for the activation of Oakajee and for additional infrastructure requirements, and provide support to the renewable hydrogen unit within the department of jobs, tourism, science and innovation, the government said.
The new funding commitment comes as the government progresses a A$900,000 investment towards three industry-led feasibility studies into renewable hydrogen projects across the state. The studies, supported by the government's existing A$15mn Renewable Hydrogen Fund, include projects in metropolitan and regional WA to support industry development.
BP Australia will receive A$300,000 to progress their Kwinana Clean Fuels Hub proposal, which would see the company’s existing Kwinana refinery facility used for green hydrogen and clean fuel production.
Two feasibility studies will examine technologies and capabilities to support the transport of renewable hydrogen, the government said.
APT Management Services will receive A$300,000 to study the conversion of the Parmelia gas pipeline into a 100% hydrogen pipeline. Global Energy Ventures will receive A$300,000 to evaluate the technical and commercial feasibility of exporting green hydrogen to the Asia-Pacific from the Gascoyne utilising a compressed hydrogen shipping solution.
The government said it has already committed almost A$30mn towards developing a job-creating renewable hydrogen industry in WA and is delivering on the Renewable Hydrogen Strategy targets.
The state government also released its Resources Sector Strategy which prioritising six points including regional areas, exploration and streamlined approvals. The government said it wants to be an attractive investment destination which can be achieved through the Exploration Incentive Scheme (EIS) which has generated A$31mn in benefits to the state for every A$1mn invested in the scheme.
Australia's peak oil and gas body APPEA has labelled the Resources Sector Strategy as a missed opportunity. APPEA WA director Claire Wilkinson said the strategy lacks any forward-looking initiatives or tangible objectives and does not acknowledge the critical role that a reliable and affordable supply of energy, particularly that of natural gas, will play in future resource developments.
“This document falls short. Rather than providing industry with a clear understanding of the government’s priorities for the future, it is instead a collection of already-announced initiatives, most of which relate only to the minerals sector," Wilkinson said. “We need a strategy that recognises gas means jobs. We need a strategy that pulls the right levers so gas can continue to mean economic prosperity for our state and a cleaner energy future."