Jobs, cost revealed for Kwinana hydrogen play

A proposed hydrogen hub in Perth’s southern corridor could produce up to 429 tonnes per day and employ more than 1500 people under long-term plans unveiled on Friday.

The GHD-led feasibility study for BP Australia’s H2Kwinana green hydrogen hub tested three scenarios – two baseload cases producing either 44 or 143 tonnes per day, and a growth target with a 429-tonne output.

An initial 44-tonne operation would be possible with existing power infrastructure. Ratcheting the plant up to 143 tonnes to fulfill identified demand in 2026 would require an expansion of the 132 kilovolt grid to 330 kilovolts.

A 429-tonne plant, pencilled in for 2035, would require further studies of the South West Interconnected Grid’s capability to provide one gigawatt of power.

BP WA hydrogen business development manager Justin Nash said government support was critical to the project's success.

"We’re very encouraged by what we’re seeing in Western Australia, and all the right signals are coming from the Federal Government with their level of support to get us down the pathway to scale, which will ultimately drive costs down.

"Infrastructure supported by the WA government is also critical, be it transmission water, pipelines, to enable this industry to get to scale.

"We look forward to supporting Australia on its emissions reductions journey through the role we can play with renewable hydrogen and renewable fuels.”

An initial $399 million outlay for the plant was estimated, with annual running costs of about $82 million.

The first stage would employ about 365 people and generate $343 million in economic output.

GHD found the plant was feasible and noted the right policy could turn the existing bp refinery into a green hydrogen production hub.

Hydrogen Industry Minister Bill Johnston said the study brought the project closer to fruition.

“Kwinana has been a central hub of fuel operations for the past 65 years, the potential development of a green hydrogen hub would progress the decarbonisation of the Kwinana Industrial Area,” he said.

The GHD study noted the hub may require significant hydrogen storage facilities and large water use, proposed to be drawn from the Kwinana water reclamation plant.

Speedbumps identified included potential for environmental and community approvals, capacity for Western Power’s network to support the project, and insufficient power purchase agreements.

The H2Kwinana hub was awarded $300,000 by the state government in 2022 and $70 million from the federal government.

The hub would be developed by bp and Macquarie Group at a mothballed refinery site for use by local industry, vehicle refuelling and tube trailer loading.

Exports would be considered beyond the decade. A final investment decision is expected in 2024.

bp in 2020 announced it would cease refinery operations at the site and rejig it into a fuel import terminal.

H2Kwinana’s progress comes off the back of WA Premier Roger Cook revealing his plan to turn the state into a global green energy superpower.

Mr Cook fronted two forums in recent week to spruik the state’s renewables and advanced manufacturing potential.