The state government has expressed disappointment at Province Resources’ decision to scrap its plans for a major green hydrogen project, and rejected claims it was responsible for the company’s decision.
The state government has expressed disappointment at Province Resources’ decision to scrap its plans for a major green hydrogen project, and rejected claims it was responsible for the company’s decision.
ASX-listed Province has shelved early stage plans to build an ambitious green hydrogen and ammonia gas production and export facility powered by renewable energy in the Gascoyne.
The proposed project - dubbed HyEnergy - was supported by the state government, which awarded it lead agency status in 2021, meaning Province would be assisted with approvals processes.
It was earmarked for a 595,000-hecare development envelope across pastoral stations and vacant Crown land around the Carnarvon coastline, which has been touted as prime renewables territory.
On Tuesday, Province told the market it wouldn’t progress the project and pinned the decision on delays with the state government causing a reduction in investor interest.
But a state government spokesperson rebutted the notion that it was to blame, saying it had “worked hard” to facilitate the project and was disappointed Province had walked away from the opportunity.
It said Province had made a number of unreasonable and highly complex requests around land tenure and had ignored a pathway for renewable projects on Crown land.
“It is disappointing to see this company blaming the government for its own inability to raise funding or secure offtake for its project,” a state government spokesperson said.
Province bought in a joint venture partner Total Eren, under French major TotalEnergies, as a development partner but the latter pulled the pin on the arrangement last year.
Since then, Province had been progressing early stage studies but was yet to inform the market of any partner or funding arrangements ahead of making a final investment decision.
Province said its project lost investor interest after the state government failed to offer tenure for the project on terms which would be acceptable to it and potential partners.
“Due to the excessive amount of time taken by the state government to consider appropriate tenure for the HyEnergy project, the initial opportunity to advance the HyEnergy project has been lost,” Province told the market.
“These time delays have seen a significant reduction in investor interest in the sector, and ultimately, resulted in many companies deferring their plans to develop their green energy projects.”
The government spokesperson said legislation was passed last year specifically to enable renewable energy projects on Crown land in Western Australia.
“[However], Province Resources opted to ignore this pathway, instead making a number of unreasonable and highly complex requests around land tenure,” the spokesperson said.
“Despite this, the state government has worked hard to facilitate Province’s project – including granting lead agency status to the project – and we are disappointed that Province has now walked away from this opportunity.
“Our government remains supportive of opportunities for renewable hydrogen in WA, however it should be noted that a number of large-scale hydrogen proposals have been deferred in recent months, given global market conditions.”
It comes amid several WA hydrogen aspirants struggling to get their projects off the ground, including Infinite Green Energy’s state-backed project.
Last month, hydrogen advocate Andrew Forrest revealed Fortescue was unlikely to meet its goal of producing 15 million tonnes of renewable hydrogen annually by 2030.
Earlier, Fortescue withdrew its bid to secure a mass of exploration licences in the Gascoyne around Province's foothold in the region.
Province said it remained hopeful that the market and investor interest would return, and that it would continue to seek government support for the development.
It said all stakeholders, other than the state government, had been overwhelmingly supportive of the project and its activities.
“In all the years I have spent developing projects, the HyEnergy project is the first time that almost all stakeholders involved or affected by a project have been totally supportive,” Province chief executive David Frances said.
“It is disappointing that the state government would be the sole stakeholder who was not supportive of the project.
“This is in direct contrast with the government’s public statements of support for the industry.”
The state government has committed to phasing out Synergy’s coal-fired power stations by 2030, with renewables to fill the gap.
But industry players have raised concerns about the short time-frame and the stalled rollout of renewable projects.
