The federal government is putting $70 million in funding towards sustainable transport in Western Australia, as a part of a new investment within its Regional Hydrogen Hubs program.
The H2Kwinana project, a new hydrogen hub set to be based in the south of Perth, aims to both create regional jobs and begin to decarbonise the state’s industrial sector.
Led by BP Australia, the company and government estimate it will create as many as 150 jobs.
Federal minister for climate change and energy Chris Bowen says the hub is an important step in beginning the processing of creating a sustainable industry in WA.
“Investing in an Australian hydrogen industry is investing in Australia’s future,” he says.
“Kwinana has been an industrial and economic powerhouse for decades, making it an ideal location for a hydrogen hub that can support decarbonisation of heavy industry and connect our renewable resources to the world.
“These projects are the next step towards using locally produced renewable hydrogen in Australia to reduce our industrial emissions and develop a renewable export future.”
Site works for the hub are already underway, with the project progressing to Front-End Engineering Design. BP currently estimates construction to be completed in mid-2027.
When it opens, H2Kwinana is expected to produce more than 14,000 tonnes of green hydrogen per annum for industrial use and heavy vehicles, which adds up to approximately 750 vehicles a year.
WA premier Roger Cook thanks the federal government for its support in the project.
“H2Kwinana continues to make excellent progress towards becoming WA’s new clean hydrogen hub,” he says.
“Clean hydrogen has the potential to be WA’s next big industry – supporting thousands of local jobs and securing our economic strength long into the future.
“It is fantastic the state and federal governments have been able to get behind H2Kwinana to drive renewable hydrogen in our state.”
While the hub won’t be completed until 2027, BP says it expects the first hydrogen production from H2Kwinana to arrive in 2026.
The facility has the potential to have 100 megawatts of electrolyser capacity at the site as well as installation of hydrogen storage, compression and truck loading facilities.
State hydrogen industry minister Bill Johnston says this is a big step for the hydrogen industry in WA.
“The continued progress of H2Kwinana is possible thanks to the nearly $180 million invested by the state government into the renewable hydrogen industry,” he says.
“Facilities such as H2Kwinana will be vital in helping WA reach its emission goals into the future as well as support the decarbonisation of the industry sector.”