A giga-scale green hydrogen project planned for Western Australia has been given a major boost with the state government allocating developer Xodus Group, in partnership with Perth-based Warradarge Energy, land in the Oakajee Strategic Industrial Area near Geraldton.
Xodus said the allocation paves the way for it and its partners to progress the project, formerly known as Project MercurHy, under the Warradarge Energy banner.
First announced in 2022, the proposed project is expected to begin with a 26 MW electrolyser installation in the second half of 2028. This will ramp up to 196 MW of capacity by the end of its first stage, before being scaled up to 500 MW in the second and 1 GW in the third. The first stage is expected to deliver 16,000 tonnes of green hydrogen per annum.
Xodus said the initial phase is well advanced, with more than 16,000 hectares of land secured at Warradarge, power supply agreements with an existing wind farm under negotiation and offtake partners onboard. The developers also said a new 1 GW wind and 500 MW solar farm is under development, with behind-the-meter access providing a competitively priced, high-utilisation power supply.
The company said the initial focus will be on domestic hydrogen supply to decarbonise the mining and heavy transport sectors. There is an ambition to scale the development further into an ammonia export project in the same location.
Xodus Asia Pacific Vice President Simon Allison said the land allocation is a major step forward the project that plays into Australia’s quest to be one of the world’s dominant clean hydrogen players.
“We have worked hand in glove with the Warradarge Energy team, as well and industry partners and landowners to ensure we are delivering a development underpinned by a robust and scalable hydrogen supply chain,” he said.
Warradarge Energy Chief Executive Officer Stephen Archer expects the project to play an important role in bridging the gap between pilot facilities and gigawatt-scale hydrogen plants as the Australian government works to establish a globally significant green hydrogen industry.
“This project is about accelerating the supply chain, minimising technology risks, and driving down costs,” he said.
“Scalable, high-quality renewable energy projects like ours are needed to bridge the gap between today’s demonstration-sized facilities and the gigawatt-scale hydrogen developments of the future. This project is about accelerating the supply chain, minimising technology risks, and driving down costs.”
The progress of the Warradarge project comes after WA Energy Minister Amber-Jade Sanderson earlier this month called on the state’s fledgling hydrogen sector to disregard a drop-off in sentiment and push ahead with project development.
Speaking at the World Hydrogen Summit in the Netherlands, Sanderson said WA cannot become a global hydrogen powerhouse through timidity and is looking for partners willing to engage and invest.
She acknowledged the changing sentiment around hydrogen and said less hydrogen hype isn’t a problem – it’s just the next phase.
“Our ambition to develop a world-class hydrogen industry remains stronger than ever,” she said. “We know this requires government to play a strong role, and we have levers available to us that we are willing to use in the right circumstances.”
Sanderson said the government has the capacity to de-risk multiple projects at the same time, giving proponents greater certainty around access to critical infrastructure, reliable and affordable clean energy, and long-term offtake partners.
“We believe we are well placed to do this better than anywhere else in the world,” she said.
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