PERTH (miningweekly.com) – The Western Australian government has called for comment on the potential design of the state’s renewable hydrogen target for electricity generation on the South West Interconnected System (SWIS).

The target will require a percentage of electricity to be fuelled by renewable hydrogen, and design work is targeted for completion by 2023.

Electricity retailers would be required 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.

Stakeholder input will be crucial to maximising the benefits to WA and supporting the long-term growth of a local renewable hydrogen industry. 

“The government is committed to developing Western Australia's hydrogen industry and supporting our plans for a low carbon future,” said Energy Minister Bill Johnston.

“Public consultation is important in ensuring the design of the renewable hydrogen target for electricity generation is fit-for-purpose. This is a great opportunity for all interested stakeholders to have their say and assist in creating demand for hydrogen.”

Hydrogen Industry Minister Alannah MacTiernan said that Western Australia had the renewable energy resources and skills to become a world-leading renewable hydrogen producer. 

“A renewable hydrogen target for electricity generation on the SWIS is important to stimulating demand and getting renewable hydrogen generation projects kick-started. 

“Work is continuing on a broader renewable hydrogen certificate scheme which will provide a broader range of opportunities for local producers. This first piece of the renewable hydrogen target represents an opportunity to get an early start on demand stimulation.”

The consultation process closes on November 10. 

Meanwhile, the state government this week also announced that it would partner with ITM Power and Linde Engineering in a A$450 000 study to develop a business case for the manufacturing of hydrogen electrolysers within the state.

Electrolysers are a core component of producing renewable hydrogen through electrolysis, a chemical process which separates water into hydrogen and oxygen molecules using electricity.

Global forecasts project the demand for electrolyser capacity will increase from 0.3 GW currently, to close to 850 GW by 2030, and almost 3 600 GW by 2050. 

Western Australians could have up to 100 GW of renewable hydrogen generation capacity in the state by 2030, said MacTiernan.

In June, the government invited ITM Power in partnership with Linde Engineering in Australia to develop a business case for local electrolyser assembly and manufacture, which aims to identify the site, costs and local demand needed to get upstream manufacturing underway.

Electrolyser manufacturing is a key initiative in implementing the Western Australian Renewable Hydrogen Strategy. 

Under the Climate Action Fund, A$500 000 has been allocated to support industry proponents in undertaking feasibility studies regarding the potential size, scale and market for electrolyser manufacturing, assembly and maintenance opportunities. 

These studies will allow the state to better position itself in the supply chain for renewable hydrogen, by providing clearly defined opportunities around potential manufacturing capabilities. 

“Developing Western Australia's advanced manufacturing capability to produce critical components for renewable hydrogen production just makes good sense - as it will increase the resilience of our future hydrogen supply chains,” MacTiernan said.

“Funding this feasibility study is the first step toward manufacturing components for renewable hydrogen within the state. We want to be part of the full technology story in hydrogen.

“We look forward to working closely with the partnership of ITM Power and Linde Engineering in Australia to help Western Australia lead the nation in renewable hydrogen component manufacturing.

“Other industry players involved have been advised that they would also be welcome to seek partnerships with us in the future. We are keen to work with any company that wishes to invest in manufacturing in Western Australia.”