ARENA Announces $1.3mn For Renewable Hydrogen Study

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  • Since 2017, ARENA has dedicated more than $315 million to 48 renewable hydrogen initiatives
  • ARENA aims to enhance comprehension of establishing extensive renewable hydrogen ventures in Australia

The Australian Renewable Energy Agency (ARENA) has announced $1.3 million to the energy infrastructure business APA Group and the chemical manufacturing company Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) for the $3.5 million ‘Parmelia Green Hydrogen Project – Feasibility Study.’

Both parties have decided to investigate production and transportation of renewable hydrogen. This study will focus on the progress of a large-scale renewable hydrogen production facility.

This hydrogen would be transported via a 43-kilometer section of APA’s existing Parmelia gas pipeline to WesCEF’s ammonia production facilities at the Kwinana Industrial Area south of Perth.

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Commenting on the study, ARENA CEO Darren Miller said: “The decarbonization of the industrial sector is critical to progressing Australia’s 2030 and 2050 net-zero targets. Renewable hydrogen will be vital to cutting emissions in heavy industries like ammonia production and will be hugely important in industrial centres like Kwinana.”

“This feasibility study will tell us more about what it takes to develop a renewable hydrogen industry in Western Australia and ARENA will play an active role in sharing those lessons with the market.”

ARENA has highlighted that WesCEF currently produces ammonia using natural gas, and the renewable hydrogen generated by this initiative could potentially lower emissions from the facility. ARENA aims to enhance comprehension of establishing extensive renewable hydrogen ventures in Australia, along with exploring the technical prerequisites and economic aspects of transporting renewable hydrogen through pipelines.

As per ARENA, this project aligns with APA’s exploration of the technical viability of utilizing its Parmelia gas pipeline for hydrogen transportation. Findings have indicated the feasibility of operating the southern 43-kilometer segment of the pipeline with 100% hydrogen. Since 2017, ARENA has dedicated more than $315 million to 48 renewable hydrogen initiatives. In October 2023, ARENA launched the Hydrogen Headstart program, valued at $2 billion, with the goal of supporting renewable hydrogen production by bridging the cost gap between production and market prices, as disclosed by ARENA.

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