PERTH (miningweekly.com) – The Western Australian government has released draft legislation to support the state’s hydrogen industry and to modernise the existing petroleum legislation.

The Petroleum Legislation Amendment Bill seeks to amend the Petroleum and Geothermal Energy Resources Act (PGERA), the Petroleum Pipelines Act (PPA) and Petroleum Submerged Lands Act (PSLA), addressing a number of urgent petroleum operational-based amendments to the three Petroleum Acts relating to environmental aspects, royalty calculation, underground storage and additives.

It will also enable the exploration and production of naturally occurring hydrogen. By introducing the new concept of 'regulated substances', the Bill proposes that these activities be regulated under the legislative framework within the PGERA and PSLA. 

“The government is committed to supporting Western Australia's emerging hydrogen industry and the role it has to play in our State's clean energy future,” said Mines and Petroleum Minister Bill Johnston.

“Not only will this Bill modernise the Petroleum Acts, it will provide opportunities to grow and diversify our economy. All interested stakeholders are encouraged to have their say on the proposed amendments.”

Hydrogen Industry Minister Alannah MacTiernan noted that the legislative changes were very important for many renewable hydrogen projects in Western Australia.

“The amendments bring hydrogen into a modern legislative framework that will provide certainty for emerging players,” she added.

A 12-week consultation period will now begin for stakeholders to provide their feedback on the proposed amendments.

Meanwhile, the state government also released new policy and guidelines for large-scale renewable hydrogen projects, outlining the process for access and use of Crown land.

“We are very conscious we need to help renewable hydrogen proponents navigate land tenure arrangements and to make those processes fit for purpose,” said MacTiernan.

“In addition to the more than A$170-million we have invested in the state's renewable hydrogen industry, we know that one of the best ways we can support projects is by providing certainty and clarity with policy and guidance.

“The new policy and guidance released today are useful documents for any large-scale hydrogen project proponents hoping to access and use Crown land.”

MacTiernan noted that proponents of large-scale hydrogen projects needed to consider a number of factors when developing a proposal, including the existing land tenure over the site being proposed, the underlying interest holders of the land, including native title rights and interests, the various stakeholders with an interest in the site, and the legislative framework for gaining short- and long-term access to the site.

The Guidance for Land Tenure for Large Scale Renewable Hydrogen projects outlines the Western Australian government's preference that where more than one project proponent has an interest in the same area of Crown land, those project proponents and any existing interest holders co-exist.

Co-existing can include sharing the same land at the same time or facilitating sequential uses of the same land. Agreement to co-exist will involve good faith and best endeavours negotiations and agreement-making based on the development of ongoing working relationships.

The Policy for Consideration of Highest and Best Use sets out the preferred, transparent and timely process for managing situations where negotiations do not lead to a co-existence arrangement between new competing projects proposed for the same area of land. 

The policy includes a criteria that will be used to assess whether a project will deliver the highest and best use of the relevant Crown land. The documents also provide practical guidance for renewable hydrogen proponents seeking early access to the Crown land to complete on-site feasibility and geotechnical studies. 

The state government on Tuesday also reported that progress had been made on a renewable hydrogen target for the state.

Following stakeholder consultation, the state government will progress to the detailed design phase for the Renewable Hydrogen Target for electricity generation in the South West Interconnected System (SWIS) based on a 1% target. A complementary, broader Renewable Hydrogen Target scheme is under development for all uses of the clean energy source.

Energy Policy WA will undertake a study into the role of renewable hydrogen in the SWIS, targeting areas such as long-term storage and peaking generation, to inform further work on outstanding design elements, including how certificates are created, the determination of liable entities, and identification of a regulatory agency.

To address stakeholder feedback on other potential uses of renewable hydrogen, the Department of Jobs, Tourism, Science and Innovation will simultaneously lead the development of a broader Renewable Hydrogen Target scheme.

The broader use-agnostic scheme will consider all potential use cases for renewable hydrogen, including transport, industrial feedstock, electricity generation, and pipeline blending.

It is expected to allow for certificates to be created for renewable hydrogen produced for any purpose, such as the replacement of grey hydrogen used for industrial purposes or road transport, allowing the market to develop and deliver hydrogen at a lower cost to consumers.

“The investigation of a Renewable Hydrogen Target for electricity generation in the SWIS was an important first step in stimulating local demand and supporting emerging renewable hydrogen production projects,” MacTiernan said.

“Work will concurrently progress on the development of a broader Renewable Hydrogen Target scheme, which considers all potential use cases for renewable hydrogen and will incorporate valuable stakeholder feedback from our consultation.

“The findings of the investigation into a Renewable Hydrogen Target for electricity generation in the SWIS will also be incorporated into the evaluation and refresh of the Western Australian Renewable Hydrogen Strategy.”