(Perth / Australia) – In a feasibility study, the Australian branch of the oil company BP has come to the conclusion that the large-scale production of green hydrogen and green ammonia using renewable energies is technically feasible in Australia. The state of Western Australia in particular “with its enormous potential solar and wind resources, existing infrastructure and proximity to long-term markets” is ideal for the development of large renewable energy plants. The yield could be used to produce green hydrogen and ammonia for the domestic and export markets.
The study examined the potential for a renewable hydrogen and ammonia production facility, the hydrogen supply chain, and domestic and export markets at two scales: demonstration/pilot scale (4.000 tons of hydrogen for up to 20.000 tons of ammonia) and commercial scale (200.000 tons of hydrogen for up to a million tons of ammonia). Three different hydrogen production technologies were considered, and a mix of solar and wind energy supported by battery storage was modeled as energy sources. 
Depending on the location and scope, significant additional investments in infrastructure are required, especially for connections to ports, but also for electricity and water supplies. The distribution of gaseous or liquid hydrogen or ammonia can be adapted to customer needs and can take place via pipelines, trucks, trains or ships.
Markets must continue to develop
Economic viability was also examined, revealing that the renewable hydrogen and ammonia markets still need further development. The study concludes that this is required on a significant scale for the general use of hydrogen to be economically viable.
The detailed feasibility study is the first stage of BP's approach to assessing the potential for renewable hydrogen in investment in Australia's domestic and export markets. Created by Australian consulting firm GHD Advisory and supported by the Lightsource BP joint venture and the Australian Renewable Energy Agency (ARENA), it is considered a key component of the GERI (Geraldton Export-Scale Renewable Investment) project.
“The report is an important building block in our journey to create a fully integrated renewable hydrogen supply chain, enabling Australia to take a leading role in a future export industry,” said ARENA chief executive Darren Miller. According to Jason Fonti from GHD Advisory, “the magic number” is the production of hydrogen for less than two Australian dollars (1,22 euros) per kilogram. “The study showed that through innovation, talent, commitment and collaboration, Western Australia can become a major exporter of hydrogen to the global market.”
The analysis is publicly available pursuant to an agreement between BP and ARENA and can be downloaded as a PDF (82 pages) at
https://arena.gov.au/assets/2021/08/bp-ghd-renewable-hydrogen-and-ammonia-feasibility-study.pdf
Photos
BP terminal in Kwinana, Western Australia, 37 kilometers south of the capital Perth. © BP Australia
