Dubbed the WAH2 project, it hopes to establish low-carbon hydrogen production through reformed natural gas combined with carbon capture and storage (CCS) in depleted gas reservoirs.
H2 View understands hydrogen produced from the project will be converted to ammonia which Hexagon has said will offer reduced processing and transporting costs, as well as aligning with customer needs for ammonia.
The company plans to produce 250,000 tonnes of ammonia per year in the first phase of the project, with hopes of increasing capacity to produce up to 800,000 tonnes per year in the second phase.
Australia’s potential to become a key exporter of hydrogen and its derivatives to Asia by 2050 was highlighted by the Hydrogen Council’s 2022 Global Hydrogen Flows report.
Read more: Regional supply and demand mismatch will force global trade links by 2050, report predicts
In the preliminary feasibility study, Hexagon intends to explore hydrogen production methodology energy carrier solution, site location, project scaling, gas supply, CCS, production technology alternatives, and identification of enhancements to minimise capital and operating costs.
With hopes of completing the study in the second quarter of this year (2023), Hexagon has said it will in parallel progress commercial discussions regarding gas supply, utilities, carbon dioxide sequestration, and ammonia offtakers, as well as securing an Option to Lease from the Western Australia (WA) Government for a preferred project site.
“Key questions around availability of input gas and carbon dioxide sequestration capacity from already planned providers have been addressed, clearing a major hurdle to the viability of the project,” said Charles Whitfield, Chairman of Hexagon Energy Materials.
Whitfield added, “The company will now move ahead with a preliminary feasibility study which is anticipated to be completed in Q2 of this year. In parallel with this, key commercial discussions with input and service providers, the WA Government, potential offtakers and strategic partners will all be progressed.”
There’s a lot to like about the new Australian Government’s hydrogen outlook
One statement stood out like a beacon when the then-Labor Opposition released its energy policy in the lead up to the recent Australian election campaign: “Business has shown leadership. Government must play its part.”
The hydrogen industry is doing its job in relation to innovation, and can look forward to the immediate future with optimism.
Labor will rule with a small majority in the Australian Parliament’s lower house and a friendly Senate in which the Australian Greens will hold the balance of power but is expected to be well disposed towards pro-climate legislation.
Newly-minted Minister for Climate Change and Energy, Chris Bowen, is an incisive thinker who has a significant track record as a minister in previous Labor governments, briefly serving as Treasurer. I am confident that he understands the challenges, especially in regards to planning and putting a rigorous regulatory framework in place.
Make no mistake: An Australian hydrogen industry will require large-scale electrolysers, renewable electricity, hydrogen storage, water and water pipelines, electricity infrastructure, CCS as appropriate, and hydrogen pipelines (which may be repurposed from existing pipelines)…
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