Clean Energy Innovation Park

September 8th, 2022

Clean Energy Innovation Park

The project is seeking to develop a commercial-scale renewable hydrogen production facility in Western Australia, with a focus on gas blending.

Main proponents:

ATCO Australia Pty Ltd

Main end-use classification:

Hydrogen in gas networks, potential for use in mobility applications

Status:

Advanced development – subject to successful completion of technical and commercial milestones and a positive final investment decision, operations could start in 2023

Estimated cost:

Feasibility study: AUD$500,000

Project capital cost: AUD$46 million (as included in ATCO Clean Energy Innovation Park Knowledge Sharing Report)

Other involvement:

 

Production details:

Hydrogen production: 4.0 tonnes per day capability

Location:

Western Australia, Australia

Announced funding:

AUD$375,000 – Western Australian Government Renewable Hydrogen Fund (feasibility study)

AUD$125,000 – ATCO Australia Pty Ltd (feasibility study)

Capital works:

AUD$28.7 million – ARENA Renewable Hydrogen Deployment Funding Round (conditional award)

Project description

ATCO’s Clean Energy Innovation Hub, located at its Jandakot Operations Centre in Perth, is a testbed for hybrid energy solutions and integrates natural gas, solar PV, battery storage and hydrogen production.

Building on research gained from the Hub, ATCO undertook a feasibility study to assess the potential for development of a commercial-scale hydrogen production facility in Western Australia.

The feasibility study was released in May 2021 (recipients of grant funding from round 1 of the Western Australian Renewable Hydrogen Fund are required to submit public knowledge sharing reports for their completed feasibility study).

The Market Sounding assessment undertaken as part of the feasibility study concluded that the use of hydrogen for injection into the local gas network was the most viable short to medium term revenue stream (while balance of production could be made available to replace or blend with traditional fuels in the transport sector though ramp-up in volumes may take several years).

The study also noted that commercial discussions were underway exploring the potential for a joint venture structure to develop the Clean Energy Innovation Park (CEIP).

The feasibility study identified the CEIP would be co-located with the existing 180 megawatt (MW) Warradarge renewable wind farm, approximately 245 kilometres (km) north of Perth, and which became operational in the latter part of 2020.

The CEIP facilities  include a 10 megawatt (MW) electrolyser and plant capable of producing up to 4.0 tonnes of hydrogen per day (1,267 tonnes per annum forecast) with onsite storage capability of 4 tonnes of hydrogen for seasonal variances. Daily renewable energy usage is forecast at almost 200 MWh per day while water input usage of the electrolysis unit is forecast at 104,000 litres per day. Carbon emissions reduction potential is forecast at 10,754 tonnes per annum.

For gas blending usage, the feasibility study suggests that the produced hydrogen would be trucked to Gate Stations for entry into the Dampier to Bunbury natural gas pipeline system (the Russell Road and Welshpool Stations being noted in schematics in the feasibility study).

The feasibility study (schematically) describes future opportunities for the CEIP. An emphasis of the study is around commercial, regulatory and risk considerations of the project.

Key technical information on the project is included in Appendix A of the feasibility study

Milestones

January 2020: The feasibility study for this project is one of seven feasibility studies to which funds were allocated in January 2020 by the Western Australian government under its Renewable Hydrogen Fund.

May 2021: The project is awarded conditional funding of AUD$28.7 million towards a 10 MW electrolyser for gas blending under ARENA’s Renewable Hydrogen Deployment Funding Round.

 

Updated: September 2022