A South Korean consortium is aiming to build a hydrogen project at Narngulu industrial estate near Geraldton, saying it can’t wait for land at Oakajee to be developed.
A South Korean consortium is aiming to build a hydrogen project at Narngulu industrial estate near Geraldton, saying it can’t wait for land at Oakajee to be developed.
The consortium is aiming to invest about $10 billion in hydrogen and ammonia plants with capacity of 1 million tonnes per year.
The project, also known as Western Giga Energy, includes wind and solar farms able to produce 3 gigawatts of renewable energy to run the hydrogen electrolyser.
It counts the government-owned Korea Midland Power Co, aka KOMIPO, as an investor and offtake partner.
Korean engineering giant Samsung C&T is also an investor while the consortium’s local partner is Progressive Green Solutions (PGS), led by Perth engineer James Rhee.
Mr Rhee told Business News that KOMIPO had the capacity to buy the project’s output, giving his consortium a big advantage over other groups hoping to build large-scale hydrogen projects in WA.
“We have a 100 per cent offtake guarantee,” he said.
“All the other projects are looking for a buyer (of their product), they can’t proceed until they get one.”
Mr Rhee said his consortium was targeting hydrogen production by 2027 and full capacity by 2029.
“We cannot wait for the Oakajee development,” he said.
“We need to deliver by Q1 2029 at the latest.”
The project is part of KOMIPO’s plan to decarbonise its operations, by blending green hydrogen and green ammonia with gas and coal.
KOMIPO operates power stations in Korea with a capacity of 12GW.
The state government said it had brokered a land use solution to accommodate the project at Narngulu industrial estate, 12 km south-east of Geraldton.
It added this solution would “pave the way for a new renewable energy cluster in Geraldton to complement the planned hydrogen hub at Oakajee”.
This represents the first time the government has spoken of Narngulu being used in this way.
Previously its focus has been on development of a ‘greenfields’ industrial estate at Oakajee, 23km north of Geraldton, to accommodate hydrogen projects in the Mid West.
Last year the government selected six preferred proponents to develop projects at the so-called Oakajee Green Hydrogen precinct.
These were BP, Fortescue Future Industries, Copenhagen Infrastructure Partners, Green LOHC, Kinara Power and Blue Diamond Australia.
The Mid West’s key attraction is its abundant wind and solar, making it ideal for renewable energy generation.
However, neither the government nor the preferred proponents have committed to proceeding with any developments at Oakajee.
Progressive Green Solutions is a business name of Pilbara Green Steel Pty Ltd, whose sole director and major shareholder is Mr Rhee.
He was born in South Korea but told Business News he has lived in Perth for about 25 years.
He has worked with German company Enercon, which has been involved in the development of 12 wind farms in WA.
Mr Rhee said his consortium was aiming to follow the Mid West project with development of a second hydrogen project in the Pilbara.
It was targeting a development site at Anketell, which had previously been earmarked as the site for a new iron ore port.
He said hydrogen and ammonia exports used relatively small ships and would not require the heavy infrastructure of an iron ore development.
In the Mid West, the consortium is aiming to acquire 83ha from state government lands agency DevelopmentWA for its ammonia and hydrogen plants.
Mr Rhee said it planned to acquire about a further 100ha from a private landowner so it has the capacity to build the towers and blades for wind turbines in Geraldton.
Lands minister John Carey said the state government was committed to de-constraining land for WA’s renewable energy sector.
“The strategic location of Narngulu has attracted local and foreign investors who are looking to utilise its proximity to key industrial areas and transport links including Geraldton’s port,” he said.
“Through strategic planning, we’ve been able to attract interest in our regions through making industrial land available to build businesses for the future.
“The work being done by our government, through the Industrial Lands Authority, ensures we are ready to meet that demand.”
