Western Green Energy Hub Pty Ltd (WGEH) and Korea Electric Power Corporation (KEPCO), Korea’s largest energy utility, have taken a significant step forward in their collaboration to advance green hydrogen production in Western Australia.
Building on a Memorandum of Understanding signed in July 2023, the two entities have formalized their partnership with a new Collaboration Agreement aimed at developing Stage 1 of the WGEH project.
Detailed Feasibility Study for Green Hydrogen
The Collaboration Agreement outlines a clear plan for conducting a full feasibility study focused on engineering, cost modeling, and identifying potential sources of project support from both Korean and Australian authorities. This study is expected to guide the development of Stage 1, which will generate 6 GW of hybrid wind and solar power, producing up to 330,000 tons of green hydrogen annually. WGEH CEO Ray Macdonald emphasized that this project could solidify Australia’s role as a global player in the emerging green hydrogen sector and help meet Korea’s growing demand for clean energy.
Leveraging Expertise and Global Networks
KEPCO’s involvement brings a wealth of experience in large-scale infrastructure projects. The Collaboration Agreement enables both WGEH and KEPCO to integrate their teams, industry contacts, and government relationships, creating a learning platform that will enhance the project’s success. Chanhyuk Chun, KEPCO VP, expressed enthusiasm for the partnership, noting that this collaboration will help prepare KEPCO for future opportunities in Australia’s renewable energy landscape.
Government Support Boosts Hydrogen Prospects
The project has gained momentum following the Australian Government’s announcement of a $2 per kilogram tax incentive for renewable hydrogen production, as part of its A$22.7 billion “Future Made in Australia” initiative. At the same time, Korea is launching its Clean Hydrogen Power Bidding Market, including a Contract for Difference scheme aimed at promoting clean hydrogen in its power sector.
