The company has invested in two existing projects as it aims to keep up with an evolving market.
Woodside has announced that it has taken stakes in two renewable green hydrogen projects only a year after it predicted that it would be cheaper to obtain H2 from gas for the next three decades.
The energy giant seems to have changed gears and is investing in projects with greener H2 sources.
The announcement was made by Woodside’s chief executive Peter Coleman. He spoke to investors, revealing that two renewable green hydrogen projects were among the latest investments for the energy firm. This means that the energy company is seeing greater potential in the emissions-free form of H2 than had previously been suggested.
Woodside is moving forward with other forms of emissions-free energy and H2 production. It has entered into a joint venture with the APA energy infrastructure company which would produce hydrogen at the APA Badgingarra wind and solar farm. That H2 fuel would be used in industry, transportation and power generation. Over the longer term, it could potentially begin pipeline-based delivery to Perth.
The energy company has also become the Bell Bay H2TAS operator near. Bell Bay is close to Launceston, Tasmania. In that project, hydropower and wind energy would be used for producing 4.5 tonnes of hydrogen per day.
The two renewable green energy projects are among those shortlisted for significant funding.
The Australian Renewable Energy Agency (ARENA) is funding projects with a total $70 million to help fast track hydrogen development in the country. The two projects receiving Woodside investment are among the seven that have been shortlisted for the funding. ARENA will name its preferred projects midway through next year. They will arrive at a financial close before the end of 2021 so that construction can begin in 2022.
Each of the projects in which Woodside has invested come with a cost of about $70 million. The green H2 will be produced using electrolyzers with a minimum capacity of 10 megawatts. This will place the renewable green hydrogen projects at the high end of production when compared to international counterparts.