Osaka Gas, a Japanese gas company, has become a partner in Australia’s Desert Bloom green hydrogen project, helping with project management, offtake development, and procurement.
The Desert Bloom project, which will create 410,000t/yr of green hydrogen for domestic consumption and export from 2023, is being built by Australian technology company Aqua Aerem in the country’s Northern Territory. Construction will begin in 2022, subject to the approval of the FID.
The project hopes to create hydrogen for less than $2/kg by 2029, and the territory’s administration has awarded major project status’ to assist speed up the clearance process. Potential off-takers are being contacted by Aqua Aerem.
“We’re excited to be working with Osaka Gas on the further development of Desert Bloom Hydrogen, Australia’s most advanced, shovel-ready green hydrogen project,” says Aqua Aerem CEO Gerard Reiter.
“This agreement demonstrates the project’s enormous worth and Aqua Aerem’s cutting-edge air-to-water technology.”
Using a succession of the company’s modular 2MW hydrogen production units, the project will collect the quantity of water necessary for its operations from the air. According to Aqua Aerem, the technology will allow green hydrogen projects to be built in desert places with abundant solar resources.
Sanguine Impact Investment, a renewable energy investor, is supporting the endeavor. Sanguine is now soliciting funds to extend the project’s size from 10GW to 20GW.
Gladstone is the center of activity
Green hydrogen initiatives in Gladstone, one of seven potential centers highlighted in Australia’s national hydrogen plan, are also gaining traction.
The H2 Hub Gladstone project in Queensland was also given significant project designation this week by the Queensland government. Australia’s Hydrogen Utility is building a 3GW green hydrogen hub that will create 5,000t/d of green ammonia. The project is expected to start in early 2024.
In addition, H2 Hub Gladstone has inked a non-binding agreement with explosives maker Orica to build a domestic green ammonia offtake and supply deal. The two companies will also look at the feasibility of constructing a green ammonia export terminal at Gladstone’s port, utilizing existing Orica ammonia storage capacity and infrastructure.
The Queensland government’s Stanwell Corporation is spearheading an Australian-Japanese collaboration to develop a 3GW hydrogen manufacturing facility near Gladstone’s Aldoga. In addition, Fortescue Future Industries and the Queensland government have agreed to collaborate on the development of an electrolyzer facility in the region.
National policy
As part of its 2022-23 budget, Australia has set aside A$850 million ($635 million) to invest in hydrogen technology in order to become a significant exporter of fuel. Gladstone, Darwin, Tasmania, the Eyre Peninsula, Pilbara, the Latrobe Valley, and the Hunter Valley are all aiming to build regional hydrogen centers.
According to the country’s Department of Industry, Science, Energy and Resources’ current State of Hydrogen report, green hydrogen production prices are predicted to fall to A$2-4/kg ($1.5-2.2/kg) by 2030.
As Australia seeks to secure hydrogen supply, Japanese corporations have inked a number of tentative agreements with Australian firms.
