APA Group (APA) and Wesfarmers Chemicals, Energy, and Fertilisers (WesCEF) have secured a substantial $1.33 million in funding from the Australian Renewable Energy Agency (ARENA). The funding, facilitated through ARENA’s Advancing Renewables Program, is earmarked for the Parmelia Green Hydrogen Project in Western Australia, a venture set to reshape the energy landscape.
The Parmelia Green Hydrogen Project aims to produce and transport cost-effective green hydrogen to WesCEF’s production facilities at the Kwinana Industrial Area, leveraging APA’s existing Parmelia Gas Pipeline (PGP). This initiative aligns with the national goal of efficiently transitioning to a low-carbon future by utilizing existing energy infrastructure. The feasibility study supported by ARENA’s funding will further explore the potential and viability of this groundbreaking project.
A crucial facet of the Parmelia Green Hydrogen Project is APA’s PGP conversion project, marking the first of its kind in Australia. This transformative endeavor assesses the conversion of a 43-kilometer section of the PGP to transport pure hydrogen. Initial testing has yielded positive results, demonstrating technical feasibility, safety, and operational efficiency. This paves the way for repurposing existing gas infrastructure assets to support the evolving energy landscape.
APA CEO and Managing Director, Adam Watson, emphasizes the project’s significance in supporting industry decarbonization efforts. With around 90% of natural gas in Australia powering critical industries, many of which pose challenges in terms of emissions reduction, the project offers a strategic opportunity. Leveraging Australia’s robust gas sector capabilities, the Parmelia Green Hydrogen Project seeks to accelerate the adoption of low-emission technologies, aligning with the nation’s commitment to a sustainable future.
WesCEF Managing Director Ian Hansen underscores the collaborative effort with APA in driving the Parmelia Green Hydrogen Project. This initiative not only contributes to WesCEF’s transition to net-zero emissions but also plays a pivotal role in the broader journey of decarbonizing existing industries and fostering new growth opportunities.
ARENA CEO Darren Miller hails the feasibility study as a crucial step forward for renewable hydrogen in Western Australia. Recognizing the industrial sector’s role in Australia’s net-zero targets, Miller highlights the vital contribution of renewable hydrogen in emissions reduction, particularly in heavy industries like ammonia production. The study is poised to unveil valuable insights into developing a renewable hydrogen industry, with ARENA committed to sharing these lessons with the broader market.
APA and WesCEF have enlisted KPMG as the commercial and financial advisor and Genesis Energies to support the Feasibility Study. This strategic partnership brings together industry expertise to ensure the comprehensive evaluation and success of the Parmelia Green Hydrogen Project.