Government of Australia accelerates green hydrogen export project
The government of Australia has granted the proposed Asian Renewable Energy Hub (AREH), a large green electricity-to-hydrogen project in the Pilbara area of Western Australia, "major project status."
Its main purpose is not to generate electricity for the grid: instead, its production will be used by electrolysis to make green hydrogen.
To make ammonia, the hydrogen would be mixed with atmospheric nitrogen that would be shipped for use as a fertilizer and as a marine fuel.
“The Asian Renewable Energy Hub has the potential to transform the East Pilbara and neighbouring Broome shire and to contribute to a major new export industry for Australia. Not only will the plant be able to export at scale, it will also be able to supply industries in the region while creating new job opportunities and economic growth,” said Australian Minister for Industry, Karen Andrews.
Around 10 percent of the power of the facility will go to supply the needs of Pilbara's large industrial users, including mining interests. The balance will be used to produce renewable hydrogen and ammonia for export on a wide scale.
The project, led by a consortium including investment firm Macquarie, wind turbine manufacturer Vestas, developer Intercontinental Energy and energy trading firm CWP Energy Asia, has been in progress since 2014.
In 2025, a final investment decision is expected, with construction starting the following year. Exports of the first product will launch in 2027-28.
Maritime Business World