The Australian Renewable Energy Agency (ARENA) is injecting $1.3 million into the ‘Parmelia Green Hydrogen Project – Feasibility Study’ in a significant stride towards Australia’s renewable energy future.
This collaborative effort between APA Group (APA), one of Australia’s premier energy infrastructure businesses, and Wesfarmers Chemicals, Energy and Fertilisers (WesCEF), one of Western Australia’s largest chemical manufacturing companies, aims to explore the production and transportation of renewable hydrogen through an existing natural gas pipeline south of Perth.
The $3.5 million feasibility study will delve into the development of a large-scale renewable hydrogen production facility, powered by purpose-built renewable generation south of Kwinana, WA, ARENA said in a news release.
The produced renewable hydrogen is earmarked for transportation through a 43-kilometre segment of APA’s existing Parmelia Gas Pipeline to WesCEF’s ammonia production facilities at the Kwinana Industrial Area, potentially reducing overall emissions from the facility.
WesCEF, currently reliant on natural gas for ammonia production, sees the project’s renewable hydrogen as a catalyst for a significant reduction in emissions.
APA’s prior work on the technical feasibility of transporting hydrogen through its Parmelia Gas Pipeline has already established the viability of operating the southern 43-kilometre stretch with 100 per cent hydrogen.
According to ARENA, renewable hydrogen is emerging as a linchpin in Australia’s quest for net-zero emissions, especially for challenging sectors like metals and chemicals production.
The ‘Parmelia Green Hydrogen Project – Feasibility Study’ will not only advance the understanding of large-scale renewable hydrogen projects in Australia but also shed light on the technical requirements and economics of hydrogen transportation via pipelines.
ARENA CEO Darren Miller underscored the importance of the feasibility study in Western Australia’s renewable hydrogen journey.
“The decarbonisation 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,” Miller said.
The funding from ARENA comes as part of its commitment to support innovative projects in the renewable hydrogen space.
ARENA has already allocated over $315 million to 48 renewable hydrogen projects, covering a spectrum from early-stage research to groundbreaking deployments, including hydrogen refueling and trucks, renewable ammonia production, and applications in alumina refining and remote power.
APA CEO and Managing Director Adam Watson expressed appreciation for ARENA’s support, stating, “This funding contribution from ARENA will support the next stage of this exciting project, which will play an important role in supporting the decarbonisation ambitions of industry.”
WesCEF Managing Director Ian Hansen echoed the sentiment, saying, “We are pleased to continue to our collaboration with APA in this exciting project to explore the application of existing infrastructure to support the journey to Net Zero.”
