Parmelia Green Hydrogen Project
Parmelia Green Hydrogen Project
Pipeline conversion and other studies are assessing the viability of producing and transporting renewables-based hydrogen via a 43-kilometre section of APA’s Parmelia Gas Pipeline to WesCEF’s production facilities in Kwinana, Western Australia.
| Main proponents:
APA Group, Wesfarmers (Wesfarmers Chemicals, Energy and Fertilisers – WesCEF) |
Main end-use classification:
Industrial applications – chemical products |
Status:
Under development |
Estimated cost:
AUD$3.46 million (project feasibility study) AUD$973 million – base case hydrogen production facilities (including balance of plant, excluding power generation costs, at constant 2022 dollars) |
| Other involvement:
|
Production details:
71.2 tonnes per day hydrogen production (200 MW electrolyser capacity) – base case hydrogen production facilities |
Location:
Western Australia, Australia |
Announced funding:
AUD$300,000 – Western Australian Government Renewable Hydrogen Fund (second round award) awarded to APA Group (pipeline conversion study) AUD$1.33 million –Australian Renewable Energy Agency (ARENA) (project feasibility study) |
Project description
The APA Group and WesCEF have undertaken a feasibility study to assess the viability of large-scale production and transportation of renewable hydrogen to WesCEF’s ammonia production facilities at the Kwinana Industrial Area south of Perth, via the southern section of APA’s existing Parmelia Gas Pipeline (PGP).
The project offers the opportunity to deliver large scale, renewables-based hydrogen to Kwinana – a land-constrained established industrial precinct – and creates optionality for hydrogen use in industry decarbonisation and growth.
The project focuses on the production of renewables-based hydrogen via electrolysis using variable renewable energy (VRE) and is being delivered in conjunction with APA’s PGP conversion project, which is assessing the ability to convert a 43-kilometre section of the PGP to transport pure hydrogen.
The published feasibility study (the study was supported by an ARENA grant of AUD$1.33 million) can be found here.
The project is structured to allow for a phased approach. The base case level of hydrogen production examined in the feasibility study is at 71.2 tonnes per day, with the potential to increase to the level allowed by the maximum pipeline transport capacity of 312 tonnes per day. Required (Alkaline) electrolyser capacity is at 200 MW and 900 MW respectively. A preferred site for the hydrogen production facilities has been identified near Pinjarra, approximately 80 kilometres south of Perth, with proximity to key infrastructure – 330 kilovolt transmission lines, water pipelines and the PGP.
For the base case production scenario, the optimal power configuration was identified as 203 MW wind (38%), 189 MW solar (27%) complemented by 35% grid power (and green credits via large-scale generation certificates [LGCs] noting the expiration of LGCs in 2030). Daily (base case) power demand for the hydrogen production facilities is estimated at around 5,500 MWh. Given the substantial generation and grid transmission capacity required for the project, multiple power supply approaches are being explored: the feasibility study notes an identified preferred site for the wind farm is located in the mid-west region of Western Australia while solar options encompass both grid-connected or behind-the-meter generation. The feasibility study notes that renewable energy generation from the wind and solar farms would be developed as independent projects.
Project capital costs for the hydrogen production facilities (base case production scenario, including balance of plant) is estimated at AUD$973 million (at constant 2022 dollars). Wind and solar power generation capital costs would be additional capital expenditures not included in the above estimate.
The project is continuing with studies, mainly focussed on land access and approvals.
The Parmelia Gas Pipeline Hydrogen Conversion Technical Feasibility Study, supported by a AUD$300,000 grant under the Western Australian Government’s Renewable Hydrogen Fund, was completed in 2023 and involved testing the pipeline material in a gaseous hydrogen environment.
Testing undertaken as part of the PGP conversion project has indicated that it is technically feasible, safe and efficient to operate the southern section of the gas pipeline at current operating pressure using 100 per cent hydrogen.
Reviewed (reviewed by a project proponent): January 2025