Denham Hydrogen Demonstration Plant

Denham Hydrogen Demonstration Plant

Horizon Power has delivered a hydrogen demonstration project to test if renewable hydrogen 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	Status: In Operations since February 2024	Estimated cost: AUD$10 million
Other involvement:	Production details: Hydrogen estimated production – 13,000 kilograms (13 tonnes) per annum projected	Location: 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 has designed, constructed and operates 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 integrates 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 generating 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 uses 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 is compressed and stored on-site in a pressurised storage system.

When solar generation is unavailable, Horizon Power uses 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 awarded the contract to supply, install, and commission a hydrogen demonstration plant to Western Australian-based Hybrid Systems Australia (currently Pacific Energy Renewables), 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.

In February 2024, the project handed the plant over to the Horizon Power Operations Division. Since then, Horizon Power has been monitoring the performance of the plant and tracking operation and maintenance requirements for improvements, learning and knowledge sharing with industry. To date, the plant has produced more than 4,500 kg of hydrogen, generated 45 MWh of electricity from hydrogen and 2,200 MWh from the solar farm net to the grid.

This project received 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 published 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.

In June 2024, ARENA published the project report Denham Hydrogen Demonstration Project Construction and Commissioning Report. This report details the process, experiences and learnings from the project, including hydrogen plant technical specifications, project delivery methodology, design considerations, key project metrics, risk management, project approvals, construction and commissioning activities, lessons learnt and key findings.

For further information on the Denham Hydrogen Demonstration Plant project, visit Horizon Power’s website (link: https://renewtheregions.com.au/projects/denham-hydrogen-demonstration-plant/), the WA Government website (link: The Western Australian renewable hydrogen industry (www.wa.gov.au), or ARENA’s project page (link: https://arena.gov.au/projects/horizon-power-denham-hydrogen-demonstration/).

Milestones:

August 2022: Construction completed

September 2022: Pre-commissioning completed

October/November 2022: Commissioning activities commenced

September 2023: Commissioning completed

February 2024: 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.

 

Reviewed (reviewed by the project proponent): March 2025