PERTH (miningweekly.com) – The Western Australian government is considering the implementation of a renewable hydrogen target, as a support measure to grow the renewable hydrogen industry in the region.

This approach would set targets for retailers in the South West Interconnected System, Western Australia's main electricity grid, to procure a certain percentage of electricity fuelled by renewable hydrogen, creating a local market which would support emerging hydrogen projects and improve grid stability.

The design of the renewable hydrogen target will draw on the elements of the Commonwealth government's renewable energy target, which has successfully incentivised investment in renewable energy since 2001.

The state government said this week that it will work with industry to scope options for implementing the target, including electricity consumers, hydrogen producers, related industries and the wider community.

Engaging industry and other stakeholders would be crucial to maximising the benefits to Western Australia and supporting the long-term growth of our local renewable hydrogen industry, and maximising the integration of renewable energy in the state's main electricity grid.

“Renewable hydrogen will play an important role in our energy mix as we move to a lower carbon future in line with the Western Australian Climate Policy,” said Energy Minister Bill Johnston

“Western Australia's world-class renewable energy resources provide a considerable advantage in the production of renewable hydrogen. A renewable hydrogen target may also prepare Western Australia to transition from natural gas electricity turbines to hydrogen turbines to stabilise our electricity grid.”   

Hydrogen Industry Minister Alannah MacTiernan said that renewable hydrogen offers an incredible opportunity to reduce emissions while supporting local jobs and delivering long-term wealth for Western Australians.

"A renewable hydrogen target for generators on the South West Interconnected System will help stimulate local demand and support emerging renewable hydrogen production projects.

“The government has committed A$160-million to support the development of the renewable hydrogen industry in Western Australia, and is on track to meet the 2022 goals set out in the Western Australian Renewable Hydrogen Strategy."

MacTiernan is currently in Europe to promote Western Australia’s renewable hydrogen potential and identify opportunities related to the Joint Declaration of Intent that was signed between the Australian and German governments in 2020.

As part of the mission, the Minister will participate in the World Hydrogen Summit 2022 in the Netherlands, focused on global hydrogen supply chains, and use the opportunity to present the Western Australian government's Renewable Hydrogen Industry Prospectus.

The mission will also serve as the Western Australian government's first face-to-face meetings with the Port of Rotterdam since a memorandum of understanding was signed between Western Australia and Europe's largest sea port.

"Western Australia has an extraordinary opportunity to become a global renewable hydrogen industry leader and help our international partners meet their future energy and emissions reduction goals,” MacTiernan said.

“International collaboration is a key component in the transition to a clean energy future and the Western Australian government's participation at the World Hydrogen Summit 2022 aims to accelerate the State's position in the renewable hydrogen supply chain.

“European markets represent a significant opportunity for attracting renewable hydrogen investments and technology into Western Australia, and this international mission aims to accelerate those opportunities.”

Current global demand for hydrogen is estimated at more than 70-million tonnes a year and the value of Australia's low-emissions hydrogen exports could reach A$2.2-billion by 2030 and A$5.7-billion by 2040.