Australian Government to give $1.7m towards Geraldton ‘green hydrogen’ study

The Federal Government will today announce $1.7 million in funding to BP to assess the feasibility of building a renewable hydrogen and ammonia production facility in Geraldton. BP will partner with GHD Advisory on the $4.42m feasibility study. It will investigate producing renewable hydrogen using electrolysis. Under the study, due to be finalised by February, BP would use grid connected power and procure renewable electricity through a power purchase agreement. Renewable hydrogen would then be used instead of natural gas to produce renewable ammonia. BP aims to produce about 20,000 tonnes of renewable ammonia from the facility per year for domestic use. It will also investigate export opportunities by leveraging its existing trade relationships. BP selected Geraldton as the preferred location for the project partly because of its solar and wind resources, port infrastructure and proximity to big, long-term Asian markets. BP chief operating officer Asia Pacific Frederic Baudry said BP believed “green hydrogen”, produced using renewable energy, would play an increasingly important role, particularly in parts of the world with high renewable energy potential, such as WA. Federal Energy and Emissions Reduction Minister Angus Taylor said the project would build on WA’s strong ammonia production industry. “Utilising renewable hydrogen provides a fantastic opportunity for this industry to reduce emissions and sell a clean, in-demand product to global buyers,” he said. The funding announcement was made by the Australian Renewable Energy Agency. ARENA chief executive Darren Miller said renewable hydrogen represented a significant economic opportunity for Australia. “Australia is a key market for BP and other companies to progress their strategic developments for the future renewable hydrogen industry because of our abundant renewable energy resources and established trade partners,” he said. “Early investments in feasibility studies like this will help us to realise the opportunity that renewable hydrogen represents and will ultimately help us to achieve our goal of producing renewable hydrogen and ammonia at a competitive price.” Member for Durack Melissa Price said regional communities such as Geraldton would play an important role in the development of Australia’s domestic hydrogen industry. “Geraldton is a natural fit for this project through its access to solar and wind energy resources, its port facilities, and close trade proximity to Asian markets,” Ms Price said.