Western Australia’s government is considering implementing a renewable hydrogen target as a means of supporting the region’s renewable hydrogen industry.
This method would require retailers in Western Australia’s primary energy grid, the South West Interconnected System, to acquire a particular percentage of electricity from renewable hydrogen, thereby creating a local market that would promote emerging hydrogen projects and improve system stability.
The renewable hydrogen objective will be modeled after components of the Commonwealth government’s renewable energy target, which has been successfully incentivizing renewable energy investment since 2001.
The state government announced this week that it will collaborate with business to explore implementation alternatives for the aim, which will include energy consumers, hydrogen producers, allied companies, and the broader community.
Engaging industry and other stakeholders is critical to maximizing the advantages to Western Australia, sustaining the long-term growth of our local renewable hydrogen industry, and maximizing renewable energy integration into the state’s primary electrical grid.
“Renewable hydrogen will play a critical part in our energy mix as we transition to a low-carbon future consistent with Western Australia’s Climate Policy,” Energy Minister Bill Johnston said.
“Western Australia’s world-class renewable energy resources give the state a significant competitive advantage in the manufacturing of renewable hydrogen. A renewable hydrogen objective may also help Western Australia prepare to shift from natural gas to hydrogen turbines in order to stabilize the state’s energy grid.”
Alannah MacTiernan, Minister for the Hydrogen Industry, said renewable hydrogen presents an excellent opportunity to cut emissions while also supporting local jobs and generating long-term prosperity for Western Australians.
“A renewable hydrogen objective for South West Interconnected System generators will assist drive local demand and promote growing renewable hydrogen production projects.”
“The government has committed A$160 million to advancing the renewable hydrogen industry in Western Australia and is on course to reach the Renewable Hydrogen Strategy’s 2022 targets.”
MacTiernan is now in Europe to promote Western Australia’s renewable hydrogen potential and to investigate opportunities relating to the Australian and German governments’ 2020 Joint Declaration of Intent.
The Minister will also attend the World Hydrogen Summit 2022 in the Netherlands, which will focus on global hydrogen supply chains, and will utilize the opportunity to present Western Australia’s Renewable Hydrogen Industry Prospectus.
The mission will also mark the Western Australian government’s first face-to-face discussions with the Port of Rotterdam since the two countries signed a memorandum of agreement.
“Western Australia has an incredible chance to become a global leader in renewable hydrogen and to assist our foreign partners in meeting their future energy and carbon reduction goals,” MacTiernan said.
“International collaboration is critical for accelerating the transition to a clean energy future, and Western Australia’s involvement in the World Hydrogen Summit 2022 intends to strengthen the State’s position in the renewable hydrogen supply chain.
“European markets provide enormous prospects for Western Australia to attract renewable hydrogen investments and technologies, and this overseas mission aims to advance those chances.”
Global demand for hydrogen is anticipated to be over 70 million tonnes per year, and Australia’s low-emissions hydrogen exports could reach A$2.2 billion in 2030 and A$5.7 billion in 2040.
