Woodside explores Asian hydrogen opportunity

Woodside Energy has signed a non-binding deal with SK E&S to explore the development of a “lower carbon” hydrogen value chain between Australia and South Korea.

Under a memorandum of understanding announced this morning, the pair have agreed to jointly explore opportunities in ammonia and hydrogen offtake.

That includes offtake arrangements, engineering supply opportunities, and potential equity participation by SK E&S in future ammonia and hydrogen production projects.

The pair also intend to explore the existing and proposed government policies of South Korea and Australia which would help facilitate value chain development.

Australia is in the process of reviewing its National Hydrogen Strategy, with consultation guiding the strategic review closing late last year.

Woodside executive vice president new energy Shaun Gregory said the memorandum of understanding reflected an increase appetite for decarbonised energy solutions in the Asia Pacific.

“With more than 35 years of experience as a world-class developer and operator of complex energy production facilities, and as a safe and reliable energy producer, Woodside is well positioned to play a key role in the development of the hydrogen and ammonia value chain for partners in South Korea,” he said.

“This collaboration will help inform our development of the new energy products and services which could support our customers’ decarbonisation, unlock new market opportunities and support the broader Asia Pacific region in their climate goals and net zero aspirations.”

Woodside already has a hydrogen presence in South Korea.

The company holds a partial stake in the HyNet consortium, which owns a series of hydrogen vehicle refuelling stations across the country.

Woodside also has early-stage hydrogen production plans in Australia and abroad, including a proposed plan to generate hydrogen and ammonia at a site in Kwinana’s industrial precinct.

Its Australian hydrogen vision extends to a project in Tasmania, while a more advanced plan is in place for a hydrogen project in Oklahoma.

Doubt was recently cast over tax rebate eligibility of that project, named H2OK, by a US Treasury policy draft, a potential blow should the policy progress as pitched.

A fourth proposed renewable ammonia production facility has been mooted for Southland in New Zealand.

The LNG exporter has been active in Asia, where it is also exploring the potential of carbon storage as a service for its customers.

Today’s announcement follows an agreement in December, between Woodside and a group of Japanese businesses to explore the capture of imported carbon from the Asia Pacific in Australian territory.