Clean Energy Innovation Park (Archived)

April 24th, 2023

Clean Energy Innovation Park

The project proponent has completed studies which examined the development of 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:

Archived

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 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)

 

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 public knowledge sharing report (the project being a recipient of grant funding from the Western Australian Renewable Hydrogen Fund) was released in May 2021.

The Market Sounding assessment undertaken at the time 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 included 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 was forecast at almost 200 MWh per day while water input usage of the electrolysis unit was forecast at 104,000 litres per day. Carbon emissions reduction potential was forecast at 10,754 tonnes per annum.

In May 2021, the Clean Energy Innovation Park project was awarded conditional funding of AUD$28.7 million towards a 10 MW electrolyser for gas blending under ARENA’s Renewable Hydrogen Deployment Funding Round. After consultation with ARENA and other stakeholders, ATCO made the decision that it would not proceed with the development of the Clean Energy Innovation Park project at the Warradarge Wind Farm. While the proponent was initially confident it could build the project at Warradarge, its ongoing assessment and market development found the benefits of being closer to the end-user of the renewable hydrogen was more commercially viable than locating the Clean Energy Innovation Park in a more remote location. Accordingly, due to this change in project fundamentals, ATCO will not access the funding that was made available by ARENA.

 

Updated: April 2023