Alannah MacTiernan outlines 2024 construction timeline for Oakajee hydrogen hub but doubts linger

Hydrogen Industry Minister Alannah MacTiernan has earmarked a potential 2024 start to construction for the Oakajee hydrogen hub, however, some Mid West leaders remain sceptical following decades of false hope.

The Oakajee Strategic Industrial Area took centre stage at the 2022 Mid West Major Projects Conference on Tuesday morning when the State Government revealed that six companies had been allocated land.

Companies include oil giant BP, the Andrew Forrest-led Fortescue Future Industries (FFI), Copenhagen Infrastructure Partners, Green LOHC, Kinara Power and Blue Diamond Australia, with land access “subject to negotiations and agreement being reached on key terms with Development WA”.

Ms MacTiernan also announced the Government would commit an extra $5.5 million of funding to new planning works and studies to “help fast-track development” of the hydrogen hub that could be come a world-class exporter of green renewable energy.

“Now that we have made these offers and know which companies are going to be located on the site, we can do that really intensive work on the energy, the water and any other planning matters,” she said.

“We’re also announcing a study with the Port of Rotterdam and the German government to look at the export of ammonia and green hydrogen from the project.”

Ms MacTiernan said the government hoped to start works on the roads next year and outlined 2024 and 2025 as a timeline for construction.

“So there is a huge enthusiasm for these companies, we’ve just got to make sure we match it with our getting our house in order, which is why we’ve got money on the table to really press the button,” she said.

“But I would be hoping that we might see some, some of these projects starting to emerge out of the ground, as early as 2024.”

Agricultural Region MLC Steve Martin questioned this timeline stating the Oakajee project was a “long way away”.

“If we’re talking about an export industry, that requires significant upgrades to the Geraldton port or a new port at Oakajee,” he said.

“I do welcome the interest and the possibilities of a new industry in the Mid West, there are some enormous opportunities in that part of the world.”

Mr Martin said the McGowan Government had not given Oakajee the attention it deserved over their nearly six years in office.

“We are starting from scratch effectively and $5.5m for some sort of plan, the Government has had years to be doing the planning for what’s required,” he said.

“This will take an enormous amount of private investment if it’s to be real. Let’s hope that happens.”

City of Greater Geraldton Mayor Shane Van Styn welcomed the announcement but expressed similar doubts.

“Oakajee has long been talked about as a port project, it’s refreshing to finally see government, at least try and start looking to develop it as a strategic industrial area,” he said.

“I think it’s very important that people don’t get overly excited it’s still a very long-term prospect.”

Mr Van Styn also criticised the $5.5m plan, which will go towards funding a feasibility study on connecting Oakajee to the South West Interconnected System.

“I fail to see why spending millions of dollars on yet another study as to how to power a site like that is a good use of money,” he said.

“We need to get on with the job of connecting, upgrading the 330kV line from Three Springs to Geraldton and ultimately out to Oakajee.”

While scepticism around the project remains, BP’s head of integrated solutions Justin Nash said they believed WA was ideally positioned for green hydrogen production.

“The Mid West region’s natural advantages are no secret, and as we look to tackle what BP refers to as the energy trilemma — providing more secure, affordable and lower carbon energy — places like the Mid West and Gascoyne stand out,” he said.

Likewise, Fortescue Future Industries Australia West director Maia Schweizer was optimistic about the venture.

“It is a renewable energy race and Oakajee has a lot of the ingredients needed to be a leader,” she said.

“The Mid West region has the opportunity to join the global green hydrogen revolution. This land allocation is a really important milestone in firming up our proposed project.”