W.A. wants to build electrolysers to support massive green hydrogen plans

Western Australia has declared its interest in lending support for a local factory to build electrolysers to support some of the massive proposed green hydrogen projects in the state.

The state on Wednesday says a feasibility study has concluded that a 2GW per annum electrolyser manufacturing facility could create around 200 direct engineering technician jobs and 1,000 indirect jobs, as well as inject $200 million per annum into the local economy through associated services.

The study, conducted by ITM Power and Linde Engineering, says 30 per cent of the balance of plant could be supplied locally, which would be worth around $1 billion a year, and would both create and safeguard local manufacturing and assembly jobs.

W.A. has identified the potential of up to 100 GW of green hydrogen projects in the state through to 2030, but so far only the only large scale electrolyser manufacturing facility in the country is being built in Gladstone, Queensland by iron ore and green energy giant Fortescue Metals.

The feasibility study suggests that a 2 GW electrolyser plant – the same size as that being built by Fortescue – could create some $3 billion a year in construction value in the next decade.

It said a demand estimate of up to 100GW in installed capacity by 2030 represents an additional A$100 billion in construction costs, and also create a market for electrolyser maintenance, worth up to A$1.5 billion per yea, which would create up to 2,500 jobs.

The study made a series of recommendations, including further government support to identify the best location for such a facility.

The state government recently released a demand forecast for the state, which identified the potential need for up to 50GW of large scale wind and solar to support green hydrogen, electrification, and green industries in the state.

“Developing a global-scale electrolyser manufacturing industry in WA will enable the state to better position itself in the renewable hydrogen supply chain,” said Bill Johnston, the state’s energy and  hydrogen industry minister.

“An update of WA’s Renewable Hydrogen Strategy is currently under way, which will consider options to explore how gaps in the supply chain can be addressed.

“Companies seeking to pursue electrolyser manufacturing opportunities in WA are encouraged to apply for grant funding under the next round of the Investment Attraction Fund.”