Woodside and Tas Gas have signed a non-binding agreement to assess the potential of blending green hydrogen in the Tasmanian gas network.
Woodside Energy’s H2TAS renewable hydrogen project is a sign of the interest and potential in the development of a renewable hydrogen industry in Tasmania.
The proposal by Woodside, partnering with Countrywide Renewable Energy, is one of just seven projects shortlisted for Australian Renewable Energy Agency’s (ARENA) $70 million Renewable Hydrogen Deployment Funding Round.
“We are pleased to be able to support this ARENA application through a MOU signed between the Tasmanian Government and Woodside that will assist in furthering discussions between the parties regarding a potential collaboration for Woodside to develop and operate a hydrogen production facility located here in Tasmania,” Minister for Energy, Guy Barnett, said.
At the same time, Woodside has also signed a Memorandum of Understanding (MOU) with the Tasmanian Government outlining the state’s support for the company’s H2TAS project – a renewable hydrogen production facility in Bell Bay.
Signed by Woodside CEO Peter Coleman and Tasmanian Premier Peter Gutwein, Coleman said the MOU demonstrated a shared net-zero aspiration.
“Woodside is focused on moving beyond feasibility studies and is targeting hydrogen production at H2TAS in the first half of 2023, following a targeted final investment decision in the third quarter of 2021,” he said.
“Importantly, this project would create local construction and operational jobs and new opportunities for Tasmanian businesses.”
H2TAS would involve the construction of a 10 MW pilot project producing 4.5 t/day of hydrogen for domestic use.
Woodside’s agreement with Tas Gas will provide the framework to blend up to 10 per cent hydrogen, including that produced at H2TAS, into the Tasmanian company’s gas network comprising 837 km of pipelines supplying 13,700 customers.
Tas Gas CEO Phaedra Deckart said Tasmania has an opportunity to lead Australia in green energy technology.
“In terms of gas, we have an in-built competitive advantage for decarbonisation here,” she said.
“Our networks are relatively new and capable of safely conveying hydrogen, unlike older systems across Australia. The possibilities are exciting.”
“Tas Gas are to be congratulated for their foresight in planning for hydrogen blending into their gas networks as this will be a key enabler for the growth of the Australian hydrogen industry and support progress towards a decarbonised economy,” said Coleman.
An analysis provided to the state government suggests that renewable hydrogen production costs could be 10 to 15 per cent lower in Tasmania than from other Australian power grids and 20 to 30 per cent lower than from dedicated off-grid renewables, making Tasmanian an attractive base for renewable hydrogen in Australia.
Source: Tasmanian Times https://www.tasmaniantimes.com/2021/01/woodside-moves-on-hydrogen-in-tasmania/#utm_source=rss&utm_medium=rss&utm_campaign=woodside-moves-on-hydrogen-in-tasmania