(Canberra / Perth) – Australia actually wanted to leave the rest of the world behind: the central government under Prime Minister Scott Morrison granted the gigantic hydrogen project “Asian Renewable Energy Hub” (AREH) planned in the state of Western Australia the status of a major project (“major status”) in October 2020. This should significantly speed up the approval process.
There is no longer any talk of that. Instead, the Environment Minister of the same government, Sussan Ley, refused to give the project her approval. An updated plan submitted to the ministry last month has “unacceptable ecological impacts,” the public broadcaster ABC News quoted a spokesman for the minister as saying. The project will have a negative impact on endangered bird species in the wetlands near Eighty Mile Beach on the northwest coast of the Pilbara region. Furthermore, the proposed structural infrastructure disrupts tidal movements, “seriously affecting the habitats and life cycle of native species” that depend on the wetland. In short: the plans contradict the national environmental protection law (Environment Protection and Biodiversity Conservation Act, EPBC).
That is planned
The initiators of AREH want to build one of the world's largest wind and solar projects for 36 billion Australian dollars (25,6 billion euros) with an initial installed capacity of 15 gigawatts, including ten gigawatts of wind power and five gigawatts of photovoltaics. Parts of it have already been approved by Western Australian authorities. 
An expansion to 26 gigawatts is then planned. Of this, three gigawatts will be available to major energy consumers in the Pilbara region, particularly the mining industry. However, the majority of the electricity generated is used to produce green hydrogen and ammonia for the domestic and export markets. Electrolysers with an output of 14 gigawatts will use green electricity and desalinated seawater.
The infrastructure includes not only production facilities and pipelines, but also an offshore export platform and the construction of a completely new city. The total investment is estimated at more than 50 billion dollars.
State completely surprised
According to consistent media reports, the government of the state of Western Australia (WA) was apparently not informed about the new situation in advance. Regional Development and Hydrogen Industry Minister Alannah MacTiernan said she was surprised the federal government had rejected AREH's plans to produce and export green hydrogen and ammonia. It seems that “there were not many discussions with the supporters”.
The decision also “casts a bad light on the future of the Australian hydrogen industry,” explained the minister. “We have to be very clear” about where the government stands. She emphasized, however, that it was apparently possible to approve “some fairly controversial coal projects” under Morrisson’s government without any problems.
What are the next steps?
Members of the AREH consortium include green hydrogen producer Intercontinental Energy, renewable energy developer CWP Global, wind turbine manufacturer Vestas, Pathways Investments, a Macquarie Group fund, the Aboriginal people who traditionally own Nyangumarta County, and Energy Australian National University (ANU) Change Institute.
Those involved now want to change the plans so that the project can still move forward. We will work with the minister and further develop the design. Professor Andrew Blakers, director of the Australian National University Center for Sustainable Energy Systems, told ABC the importance of designing and building renewable energy projects to high environmental standards. He added that he would like to see “all mining sites in the future powered primarily by solar and/or wind energy.”
CEC demands clarification
However, the industry association Clean Energy Council (CEC) expressed concern about the decision. “The Asian Renewable Energy Hub is an economic opportunity for Australia and makes a significant contribution to local and global decarbonization efforts.” The value of the project to Australia has been recognized by the Federal Government by granting it major project status. It is assumed that the Federal Environment Minister “rejected the expanded proposal for this project before the detailed environmental studies were completed,” according to a statement from the association on Monday. The Clean Energy Council is calling for “urgent clarification” that this decision does not conflict with the approval process for non-renewable projects. The Commonwealth is expected to work with the Asian Renewable Energy Hub to assess and coordinate further action in accordance with environmental laws.
deep link
https://asianrehub.com
https://www.theguardian.com/australia-news/2021/jun/21/environment-minister-rules-huge-renewable-energy-hub-in-wa-clearly-unacceptable
https://www.abc.net.au/news/2021-06-21/government-rejects-plans-for-massive-renewable-energy-hub/100228008
Photos
Pilbara: Wind and solar parks are to be built in the region on the northwest coast of Australia, the electricity from which will also benefit companies such as Rio Tinto, one of the world's largest mining companies / © Rio Tinto
Sketch of the planned project / © AREH
