Denham Hydrogen Demonstration Plant

February 5th, 2024

Denham Hydrogen Demonstration Plant

Horizon Power is delivering a hydrogen demonstration project to test if renewable hydrogen energy can be used to produce baseload power in a remote microgrid in the coastal town of Denham, Western Australia.

Main proponents:

Horizon Power

Main end-use classification:

Microgrid – power use


Under construction – construction and testing/commissioning are completed. Operations is anticipated for an early 2024 start.

Estimated cost:

AUD$10.2 million

Other involvement:


Production details:

Hydrogen estimated production – 13,000 kilograms (13 tonnes) per annum projected


Western Australia, Australia

Announced funding:

AUD$5.7 million – Western Australian Government, of which AUD$1.0 million is allocated from the Renewable Hydrogen Fund (capital works project).

AUD$2.6 million – Australian Renewable Energy Agency (ARENA)

Project description

Horizon Power, the Western Australian regional and remote power provider, is delivering a renewable hydrogen demonstration plant in the small coastal town of Denham on the Shark Bay coastline, in regional Western Australia.

Horizon Power will design, construct and operate a renewable hydrogen demonstration plant, including a dedicated solar farm to power the hydrogen equipment, to support the commercialisation of renewable hydrogen power generation and conduct a proof-of-concept trial for possible future services.

The project is integrating renewable hydrogen into a microgrid with solar and diesel to demonstrate the ability to provide firm capacity from renewable energy sources.

Horizon Power will demonstrate the efficiency of hydrogen equipment such as the electrolyser and fuel cell, the ramp rate of hydrogen in response to the decline in solar generation, and the efficiency and storage capability of hydrogen fuel cells versus batteries. Horizon Power aims to produce frameworks and processes to replicate this technology deployment to other remote power systems.

The demonstration plant comprises:

  • Installation of a dedicated solar farm (0.704 MW DC)
  • Electrolyser (60 Nm3/hr) – 348kW
  • Hydrogen Storage Tanks (300 Bar, 3477 Nm3)
  • Hydrogen Fuel Cell (100 kW)
  • Hydrogen Compressor – 2 stage
  • Control systems and balance of plant
  • Horizon Power site works and water storage facilities
  • Meter on the Hydrogen Fuel Cell output to track the year one hydrogen energy production requirement with an estimated minimum output of 220 MWh per year
  • 100% renewable-powered hydrogen production facility.

The project will produce hydrogen via electrolysis (PEM electrolyser) to deliver an estimated 13,000 kilograms per year. This will contribute to generate renewable energy equivalent to the annual consumption of 100 residential houses in Denham, nominally 526 MWh per year (from solar and renewable hydrogen), of which at least 220 MWh will be provided by renewable hydrogen.

The hydrogen plant will use electricity from a dedicated 704kWp solar farm, that will supply the town directly, and power the electrolyser to produce hydrogen using two 174kW electrolysers, after which the hydrogen gas will be compressed and stored on site in a pressurised storage system.

When solar generation is not available, Horizon Power will utilise the stored hydrogen through a 100kW fuel cell to produce electricity ensuring a constant and reliable renewable power supply to supplement the diesel and wind generation in Denham.

Horizon Power has awarded the contract to supply, install, and commission a hydrogen demonstration plant to Western Australian based Hybrid Systems Australia, the integrated renewables division of Pacific Energy Ltd.

In late December 2022, Horizon Power received approval for the amendment of its dangerous goods site licence. This regulatory requirement was a key step for completing commissioning and initiating operations.

The project is expected to be operating in early 2024, with plant commissioning activities completed in the latter part of 2023.

This project receives funding from the Renewable Hydrogen Fund as part of the Western Australia Government’s Renewable Hydrogen Strategy and the Australian Renewable Energy Agency’s Advancing Renewables Program.

In April 2023, ARENA announced release of the project report Horizon Power Denham Hydrogen Demonstration Lessons Learnt 1 & 2. This report explains the technical viability of incorporating renewable hydrogen power systems into a microgrid.

For further information on the Denham Hydrogen Demonstration Plant project, visit Horizon Power’s website (link:, the WA Government website (link: The Western Australian renewable hydrogen industry (, or ARENA’s project page (link:


August 2022: Construction completed

September 2022: Pre-commissioning completed

October/November 2022: Commissioning activities commenced

September 2023: Commissioning completed

February 2024: Planned operational handover

The views expressed herein are not necessarily the views of the Western Australian Government or the Australian Government, and the Western Australian Government and the Australian Government do not accept responsibility for any information or advice contained herein.


Updated: February 2024