BP sees potential for large-scale green H2, ammonia production in Australia

The production of green hydrogen and ammonia using renewable energy is feasible at scale in Australia but significant infrastructure investments will be needed to launch export-scale production, BP Plc (LON:BP) says in a new report.

The UK-based oil and gas group has conducted a feasibility study, backed by the Australian Renewable Energy Agency (ARENA), analysing plans for a demonstration plant producing 4,000 tonnes of hydrogen and up to 20,000 tonnes of ammonia in Western Australia, as well as a commercial-scale project involving the construction of a 200,000-tonne hydrogen production facility and making up to one million tonnes of ammonia. Three hydrogen production technologies were considered, with power coming from wind and solar parks and battery storage systems.

"This study confirms the potential for scaled-up green hydrogen in Western Australia. This looks particularly promising in the mid-west of WA, which has existing infrastructure, access to land and abundant renewable energy resources such as wind and solar,” said BP Australia’s president Frederic Baudry. He added that the study has confirmed strong demand from potential customers both in the local and export markets, which could potentially position Australia “as a regional powerhouse of the energy transition.”

According to the findings, however, the development of a hydrogen industry would require considerable investment in ports, water and electricity networks and distribution, while the renewable hydrogen and ammonia markets need to be further advanced. “[..] significant scale will be required for general hydrogen fuel use to be commercially viable,” it states.

The study, commissioned by BP and conducted by GHD Advisory, is worth AUD 4.29 million (USD 3.1m/EUR 2.7m). ARENA funded AUD 1.58 million of the total.

BP noted it will continue to work with other parties to develop plans for green hydrogen production in Western Australia.

(AUD 1.0 = USD 0.732/EUR 0.626)

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