Western Australia

Western Australia – Hydrogen Industry Policy Initiatives

Western Australia’s Renewable Hydrogen Strategy 2024-2030

Western Australia’s Renewable Hydrogen Strategy 2024-2030, launched in October 2024, represents a comprehensive review and update of the previous strategy first released 2019. A key focus of the updated strategy is on the use of renewables-based hydrogen to produce products, adding further value to the state’s resources. The strategy has identified key focus area of:

  • Investing in infrastructure and activating hubs.
  • Speeding up approvals and enhancing social licence.
  • Supporting strategic green ammonia and green metals projects.

The strategy identifies three underlying Pillars:

  • Production: Significant investment in supporting infrastructure for renewable hydrogen
  • Use: Significant investment in decarbonisation of priority sectors using renewable hydrogen
  • Export: Western Australia is Australia’s largest exporter of renewable hydrogen products and technologies

Priority actions in support of these Pillars include:

  • Targeted support for strategically important projects in green ammonia, green metals and minerals processing, including critical minerals, in Kwinana, and the Pilbara, Mid-West and South-West regions
  • Invest in infrastructure and activation of hydrogen hubs and Strategic Industrial Areas in Kwinana, and the Pilbara, and Mid-West regions
  • Increase clarity and efficiency with approvals
  • Strengthen relationships with domestic and international partners
  • Empower aboriginal people

Renewable Hydrogen Fund

The Western Australian Renewable Hydrogen Fund (‘Fund’) has a focus on supporting capital works projects and feasibility studies across Western Australia, in accordance with the four strategic focus areas of the Strategy.

In 2019, the Western Australia Government launched the first round of the Fund with up to $10 million available; this was followed in 2020 with the announcement of up to AUD$5 million for a second round of the Fund.

Rounds 1 and Round 2 of the Renewable Hydrogen Fund are closed; more information on the projects supported through these rounds can be found here. Recipients of grant funding from the Fund are required to submit public knowledge sharing reports for their completed studies or capital works. These public knowledge sharing reports are listed and available here.

Hydrogen Fuelled Transport Program

In October 2021, the Western Australian Government announced an investment of an initial AUD$10 million for the Hydrogen Fuelled Transport Program. The program provides financial support to a project that includes the procurement and operation of hydrogen or green ammonia fuelled transport, and the installation of one or more refuelling stations. In August 2022, the Hydrogen Refueller @H2Perth project was announced as the successful proponent.

Hydrogen Hubs

Pilbara Hub

The Australian Government, through its Regional Hydrogen Hubs Program – Hubs Implementation funding stream, has awarded up to AUD$70 million to the Pilbara Hydrogen Hub initiative. The Western Australian Government has allocated AUD$70 million towards its Pilbara Hydrogen Hub initiative. In February 2024, in a joint release, the Australian and West Australian Governments announced the finalisation of the (combined) AUD$140 million agreement to support the building of a hydrogen hub in the Pilbara. Initiatives to progress development of the Pilbara Hydrogen Hub were announced in June 2024 and August 2024.

Western Tade Coast/Kwinana Hub

A significant locus of the region is the Kwinana-Rockingham Strategic Industrial Area, a centre of heavy industry development in Western Australia. The Australian Government, through the Regional Hydrogen Hubs Program – Hubs Implementation funding stream, is providing up to AUD$70 million in funding to bp for its H2Kwinana project to support establishment of hydrogen production and associated facilities at its existing site location in the Kwinana Industrial Area.

Mid-west Hub

Within the mid-west region of Western Australia, the Western Australian Government is developing the Oakajee Strategic Industrial Area. As of July 2023, the Western Australian State Government had committed around AUD$55 million to the activation of the Oakajee Strategic Industrial Area, including AUD$5.5 million across a number of site activation studies which are expected to be finalised by late 2024-mid 2025.

Other Project Support Initiatives (non-exhaustive)

In September 2021 (as part of the 2021/22 State Budget) a new AUD$50 million fund to support renewable hydrogen industry development was established to, amongst other things, stimulate local demand for renewable hydrogen in transport and industrial settings. (Note: the earlier noted AUD$10 million Hydrogen Fuelled Transport Program is included in this new fund).

In July 2023, the Western Australian Government announced fundings awarded under the Investment Attraction Fund, including awards to proponents developing hydrogen-related projects:

Regulations 

In November 2023, the Petroleum Amendment Bill 2023 (the ‘Bill’) was introduced to the State Parliament. The Bill, which passed the Legislative Council in March 2024 and received Assent in May 2024, is an amalgamation of three separate petroleum amendment bills which, amongst other things, sought to amend the Petroleum Acts to permit the exploration and production of prescribed regulated substances, such as naturally occurring hydrogen.   On passing, a secondary stage of legislative amendments will occur to implement the framework as well as develop all the supporting guidelines.

Other Initiatives and Programs (non-exhaustive)

In December 2022, the Western Australian Government:

  • Announced that the Government would progress to the detailed design phase of a Renewable Hydrogen Target for electricity generation in the South West Interconnected System (SWIS) based on a one per cent target. A complementary, broader Renewable Hydrogen Target scheme under development would consider all potential use cases for renewable hydrogen, including transport, industrial feedstock, electricity generation, and pipeline blending.
  • Announced a trilateral study including the Western Australian Government, the Netherlands’ Port of Rotterdam and the German Federal Ministry for Education and Research (BMBF) to investigate fast tracking renewable hydrogen exports from the Oakajee SIA to the Netherlands and Germany.
  • Released the document ‘Western Australian Renewable Hydrogen Guidance: Land tenure for large scale renewable hydrogen projects’ to provide certainty and clarity for renewable hydrogen project proponents in seeking to gain access to land and legal tenure for projects.

In January 2023, the Western Australian Government announced that its Industrial Lands Panel had approved allocations of land for seven projects in the Boodarie and Ashburton North Strategic Industrial Areas (SIAs). These projects across the two SIAs are evaluating delivery of a range of products including ammonia, methanol, green iron ore, and hydrogen.

In June 2023, the Western Australian Government released the Western Australia’s Green Steel Opportunity report which examines the pathways by which the state’s iron ore reserves can be used to reduce emissions from steelmaking.

In August 2023, the Western Australian Government announced it had commenced an exclusive negotiation period with a major South Korean renewable energy consortium, to establish a green ammonia plant near Geraldton.

In October 2023, the Western Australian Government announced the release of a report on the development of a business case for new electrolyser manufacturing facilities in Western Australia.

In November 2023, the Western Australian Government announced that, through an exemption order under the Environmental Protection Act 1986, the Minister for Lands would be able to grant an option to lease Crown land to renewable energy proponents while their proposal is being assessed by the Environmental Protection Authority (EPA).

In June 2024, in a joint release, the Australian and Western Australian Governments announced a joint investment of AUD$70.5 million over five years to establish a Clean Energy Skills National Centre of Excellence in Western Australia. Amongst other things, the Centre will include training in clean energy technologies, including solar, wind, hydrogen, batteries and grid integration.

Further information is here or by emailing: hydrogen@jtsi.wa.gov.au

 

Reviewed: November 2024