PERTH (miningweekly.com) – The Northern Territory government has awarded Major Project status to the $10.75-billion Desert Bloom hydrogen project, being developed by technology company Aqua Aerem.

The 10 GW Desert Bloom project will start construction in 2022, and would produce commercial quantities of green hydrogen from 2023. The project would produce at a rate of 410 000 t/y of green hydrogen, which would be used both domestically and for exports.

Aqua-Aerem co-founder and CEO Gerard Reiter said the project was transformative in the way it had managed to overcome water supply and solar/electrolysis integration problems that have so far held back global renewable hydrogen production.

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“With today’s announcement, the pathway for green hydrogen becomes a reality,” Reiter said.

“Our air-to-water technology, which solves this previously intractable water supply problem, is a world first; invented and developed here in Australia. This technology will open the door for green hydrogen projects to be located where the best renewable power sources are available, which is generally in the driest areas of the planet.

 

“Within two years, Desert Bloom will supply hydrogen for power generation in the Northern Territory, and within five years, it will produce green hydrogen for export at less than $2/kg.”

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Initially based at Tennant Creek, close to existing gas and pipeline infrastructure that can be repurposed for hydrogen, the project will consist of a series of modular and portable 2MW hydrogen production units (HPUs) that each generate water, heat, electricity, and hydrogen. Desert Bloom Hydrogen will comprise of approximately 4 000 HPUs at its peak.

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“The project has multiple competitive advantages,” Reiter said.

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“It uses proven technology and has its own water supply. It benefits from the world’s best solar resources, does not require large sunk costs before it begins producing, and it is located at the ‘energy corridor’ of rail, road and gas pipeline infrastructure linking directly to Darwin Port.

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“It also offers the most direct, cost-effective route to Asian export markets.”

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Mr Reiter said these breakthroughs and the capital and operating costs savings made by the project would enable the production of green hydrogen at less than $2/kg within five years.

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“It will assist in positioning Australia as a major player in the rapidly evolving global hydrogen market,” he said.

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“Importantly, the project will be an economic boost for the Territory, creating up to 1 000 construction jobs and more than 120 full-time positions to operate and maintain the project. It will also promote skills development and education pathways and be a catalyst for new advanced manufacturing and regional development.”

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Northern Territory Chief Minister Michael Gunner said the development of projects such as Desert Bloom Hydrogen would see the territory play a lead role in the emerging renewable hydrogen market.

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“Being the ‘comeback capital’ means diversifying the projects we have in the Territory, and Desert Bloom now marks the Territory’s 14th Major Project that’s in the works,” he said.

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“Territorians will see the benefits on the ground in Central Australia and in the Top End with around 1 000 jobs and A$1-billion a year in export revenue from this project alone, it’s good news for the Territory.”

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Aqua Aerem is backed by Sanguine Impact Investment, which is providing the capital for the project, and has executed an agreement with one of Japan’s largest gas buyers and distributors to invest in the project. An agreement with Territory Generation, the Northern Territory’s power utility, has been signed with the intention to offtake hydrogen from the initial stages of the project.