Planning officials reject green hydrogen hub because it’s not green enough

Planning officials in Western Australia have knocked back Infinite Green Energy’s (IGE) plans to build a hydrogen hub near Perth, saying the project isn’t green enough to justify land use change in the rural area.

The developer touted its Northam-based, MEG HP1 demonstration plant as being able to produce 4.4 tonnes of hydrogen a day from a two five megawatt (MW) electrolysers.  It was supposed to begin production this year, with full production due in 2025.

However, planning officials rejected the application – which won $5 million from the Western Australia government in July last year – saying the fact that it intends to use more than 50 per cent grid energy for the project means it is not “green and does not qualify for a rural zone”.

“The shire can confirm that the residents of Northam have suffered a number of electrical grid breakdowns this summer, with such an unreliable power supply from the grid how will the hydrogen plant cope with this, with no battery storage?” the panel queried. 

Planning officials said that to be considered green, the hydrogen division needed to be linked to the recently purchased Northam solar farm next door. 

However, according to planning documents from October last year, the company is intending to put both solar and hydrogen projects onto the same lot. 

IGE has been contacted for comment. 

IGE pitched the idea as a $120 million solar and green hydrogen project, with a truck loading terminal and an expansion of the neighbouring Northam solar farm, bought last year for $8 million, from 11 MW to 24 MW.

It’s a joint venture that also includes Samsung C&T which signed on in February last year, and Doral Energy Group

But the proposal had already run into problems in October last year, when the Regional Development Assessment Panel couldn’t agree on a recommendation to approve the project.

The panel deferred a decision, which at the time was based on concerns around the amount of hydrogen set to be stored on site. 

In this month’s decision, the issue of hydrogen storage also came up with questions around how the 5 tonne on-site limit would be monitored – particularly if IGE wanted to ramp up capacity at the site. 

IGE has 28 days to appeal the decision with the State Administrative Tribunal.

The company had planned the project to supply green hydrogen for 78 Class 8 heavy haul trucks a day – the likes of rubbish trucks, road trains, buses and concrete mixers.

Billed as the first of its kind in Australia, the Northam project was a demonstration ahead the a bigger, four stage Arrowsmith Hydrogen Plant in Dongara.

That project is planned to supply enough fuel for some 700 road trains daily when it starts in 2028.