BP senior manager, integrated decarbonisation solutions Justin Nash and Hydrogen Minister Alannah MacTiernan. Photo: Courtney Fowler

Six picked for Oakajee hydrogen hub

Tuesday, 18 October, 2022 - 10:05
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BP Australia and Fortescue Future Industries are among six companies selected for land at the state government’s planned Oakajee green hydrogen precinct.

The 1,100 hectare zone in the Mid West has been a centrepiece of the government’s plans to support a local hydrogen industry, and to launch development at the long-awaited port site.

Hydrogen Minister Alannah MacTiernan said BP, Fortescue Future Industries, Copenhagen Infrastructure Partners, Green LOHC, Kinara Power and Blue Diamond Australia had been approved for land at the precinct, subject to negotiations.

BP is an oil and gas supermajor, which  previously undertook feasibility work on a green hydrogen export project near Geraldton.

That found Oakajee would be a good site for the project because of port access.

While it was technically possible, the commerciality was not yet clear.

BP senior manager integrated solutions Justin Nash said WA is ideally positioned for green hydrogen production.

“The Mid-West region’s natural advantages are no secret, and as we look to tackle what BP refers to as the energy trilemma – providing more secure, affordable and lower carbon energy – places like the Mid-West and Gascoyne stand out,“ Mr Nash.

“The site has the potential to serve as a base for the production of green hydrogen and green ammonia.

“We look forward to working with our potential industrial neighbours, and the broader community, to help underpin a new hub of clean energy initiatives, and help create new opportunities for the region.”

FFI is the green hydrogen arm of Fortescue Metals Group.

It has announced it will investigate green hydrogen developments at Uaroo in the Pilbara and near Esperance, among many other locations internationally.

FFI Australia West director Maia Schweizer said the company wanted to rapidly displace fossil fuels.

“It is a renewable energy race and Oakajee has a lot of the ingredients needed to be a leader,” Ms Schweizer said.

“The Mid West region has the opportunity to join the global green hydrogen revolution. This land allocation is a really important milestone in firming up our proposed project.”

FFI had started working with the local community to understand concerns and discuss opportunities for businesses.

Copenhagen Infrastructure has started planning a series of offshore wind projects down the state’s coast.

Kinara says it is a zero-carbon project developer, while Blue Diamond says it is a family business seeking to build a solar plant in Three Springs.

Ms MacTiernan also committed $5.5 million to a Mid West Hydrogen Hub today, including cash for Western Power to study connecting the zone to the state’s grid, DevelopmentWA to plan land use, and Water Corporation to study water usage.

"Since the WA government identified Oakajee as an ideal location for renewable energy and hydrogen production, we have been working hard with proponents taking the next steps towards the establishment of a globally competitive green hydrogen industry,” Ms MacTiernan said.

"Renewable hydrogen produced at Oakajee will not only be a boon for the Mid-West, but also has the potential to become another world-class export from WA's regional areas.

"The successful proponents have the capacity to drive these new industrial opportunities forward."

State Development Minister Roger Cook said clean energy was in strong demand globally, and the state had the perfect mix of wind and solar potential.