Western Australia (WA) has approved land allocations for five green hydrogen projects, including BP’s Asian Renewable Energy Hub (AREH).

The other companies to have received allocations are mining firm Fortescue Metals Group (FMG); FMG’s green hydrogen arm, Fortescue Future Industries; South Korean Steel firm Posco; and Australian utility Alinta Energy.

The allocations were issued by the state government's Industrial Lands Panel in two Strategic Industrial Areas (SIAs). SIAs are regions close to resources and infrastructure that are suitable for industrial development.

1mn t/yr – Posco’s planned low-carbon hydrogen production in Australia

"The approval of land allocations for the Boodarie and Ashburton North SIAs will help transform these sites into globally competitive, multi-product industrial precincts,” says Roger Cook, WA’s minister for state development, jobs and trade.

"The projects across the two SIAs will deliver a range of products including ammonia, green iron ore, and hydrogen.”

Project plans

FMG plans to build a 5.4GW renewable energy hub near Ashburton, in the Pilbara region, to power its nearby iron ore mining operations with green hydrogen, and a second plant in Boodarie with the same goal.

BP hopes to take FID on AREH in 2025. The project will initially operate as a domestic provider of renewable energy and green hydrogen to the local mining industry. From the end of the decade, BP—which is also operator of AREH—will look to target export markets from the deepwater ports of Dampier and Port Hedland.

Posco is planning to build a plant that would use green hydrogen to turn iron ore into direct reduced iron and then hot briquetted iron (HBI) for export. The HBI would be used to manufacture low-carbon steel. The South Korean steelmaking firm is planning to invest $28bn in hydrogen manufacturing in Australia by 2040, producing 1mn t/yr of green hydrogen by that date.

Finally, Alinta is considering producing green hydrogen at Boodarie. where it already has a gas-fired power station.

Two awards were made to firms pursuing other projects. One was to Equus Energy, a division of domestic oil and gas firm Western Gas, for a project that will see the company produce grey hydrogen using natural gas from offshore reservoirs. The other was to UK-based Tees Valley Lithium to build a plant to produce lithium sulphate monohydrate, which is used in solar panels and some lithium-ion batteries.

The WA government  recently provided new policies and guidance for large hydrogen projects.

The state’s hydrogen strategy targets a market share of global hydrogen exports similar to its share in LNG today. WA accounted for 12pc of global LNG exports and 56pc of Australia's LNG exports in 2021, according to the state government.

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Author: Tom Young