Western Australia is seeking to fast track investment in major renewable and green hydrogen projects, and has set a goal to see hydrogen comprise one per cent of the main state’s grid electricity generation.
The policy shift follows stakeholder input on the preliminary design of the target for electricity generation in the South West Interconnected System (SWIS) that revealed further work is needed if the scheme is to balance benefits to the grid with demand stimulation.
Speaking at a hydrogen energy conference on Tuesday, Hydrogen Industry Minister Alannah MacTiernan said the WA Government has made a number of key decisions on its renewable hydrogen target since opening its policies to feedback in October 2022.
The aim of the target is to drive local demand and assist emerging hydrogen production projects, which are essential to developing the state’s hydrogen industry, MacTiernan told the 2022 Australian Hydrogen Conference.
Also unveiled at the conference was a fresh directive by the state government to slash approval times for green energy projects via a $22.5 million investment to overhaul WA’s approach to environmental approvals.
Officials at the conference acknowledged that in a globally competitive market the state needed to move through approval processes more expeditiously.
This multi-pronged approach to will help to drive investment in conventional wind, solar and wave power generators, hydrogen industries, lithium mining and critical minerals processing, and green energy product manufacturing, according to WA premier Mark McGowan.
“We are already the powerhouse of the nation’s battery and critical minerals sector, and our natural advantages mean we are perfectly placed in renewable hydrogen and renewable energy,” McGowan told the conference.
“A reduction in approval timeframes will ensure Western Australia remains a destination of choice for renewable industry investors.”
A “Green Energy Assessment Unit” is slated to be operational in mid-2023 within the Department of Water and Environmental Regulation requiring government agencies to work jointly to develop clear assessment pathways and provide timely support for investors.
A government study into the role of renewable hydrogen in the SWIS, focusing on areas such as long-term storage and peaking generation is now underway.
WAis on the cusp of becoming a global green energy superpower, with an unprecedented number of renewable energy and critical minerals proposals currently under environmental assessment and a significant number of new referrals in the pipeline, according to McGowan.
Iron ore billionaire Andrew Forrest’s Fortescue Futures Industries is heavily backing green hydrogen and envisages vast solar arrays across Australia’s sun-drenched north and west to power the electrolysis process which splits water into its components, hydrogen and oxygen.
WA has already outlined ambitions to eventually export hydrogen products from the proposed Mid-West hydrogen hub in Oakajee and is conducting studies into hydrogen demand initiatives, common user infrastructure and water supply.
As reported by RenewEconony, WA last year committed $47.5 million to kick-start road works at the site labelling it a first step in creating a globally competitive renewable hydrogen precinct.
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