Western Australia to spend A$134 mil for emissions cut, renewable hydrogen

Western Australia will spend A$134 million ($86.77 million) to slash greenhouse gas emissions and develop new clean energy industries including renewable hydrogen, the state said Nov. 16.

The industries-heavy state is developing sectoral emissions reduction strategies, or SERS, in consultation with the various sectors to lay the foundation for transitioning to net zero by 2050.

"Diversifying the economy to deliver a cleaner, affordable and reliable energy future are key priorities which present challenges but also enormous opportunities to position Western Australia as a global green energy superpower," Bill Johnston, Western Australia's Minister for Mines and Petroleum, Energy, Hydrogen Industry and Industrial Relations said.

The government is putting A$60 million to drive investment into new energy projects through its investment attraction fund which opens immediately, it said.

This would involve projects dealing in battery and critical minerals processing, renewable hydrogen, advanced manufacturing in wind and solar components, along with carbon capture use and storage projects, it added.

A further A$74 million will go into the state's net zero ambitions, as part of its SERS process launched in 2021, it said.

SERS would support innovative projects that reduce the state's emissions.

Meanwhile, it will invest around A$31 million through Horizon Power to deliver cleaner, reliable and affordable energy across the state.

Horizon Power, the Western Australian regional and remote power provider, 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.

"The final SERS will include emissions reduction opportunities for all sectors of the Western Australia economy, including electricity, industry, transport, agriculture, land use, buildings, and waste and will be announced before the end of 2023," the state government said.

Western Australia has about 25 renewable hydrogen projects, as seen on the CSIRO website, with a major hub at the Pilbara being developed for producing clean energy for decarbonization of local industries and export.

Platts assessed Western Australia hydrogen produced via alkaline electrolysis at $2.19/kg Nov. 15, down 19% month on month, S&P Global Commodity Insights data showed.

It assessed Western Australia hydrogen produced via steam methane reforming (inlcuding capex) at $4.76/kg Nov. 15, down 12% from a month ago.