Australia leading export-scale renewable hydrogen
At a glance
To better understand the possibility of using hydrogen to export renewable energy at scale, we supported bp Australia in its feasibility study into an export-scale renewable hydrogen facility in Geraldton, Western Australia.
The challenge
Our challenge was to determine whether the production of green hydrogen and ammonia using renewable energy is technically feasible at scale in Australia.
This detailed feasibility study is the first stage in evaluating the potential to invest in the emerging renewable hydrogen domestic and international export markets. It is a critical step in the global energy transition and will help position Australia as a green energy leader.
Our response
We developed a feasibility model that enables sensitivity analysis for several vital scenarios proposed by bp, with a web platform to share project analysis and findings with bp's team. The interactive financial model allows optimised investment approaches for green hydrogen.
bp Australia used our modelling to underpin their business case for significant hydrogen investment, which linked the engineering design scenarios directly to market scenarios and ultimately to the business’ financial outcomes.
The study found that the production of green hydrogen and ammonia using renewable energy is technically feasible at scale in Australia.
This will help bp develop plans for integrated green hydrogen projects in Western Australia, defining the technical and infrastructure solutions, customer demand and business models required for successful development. It will require significant infrastructure investment in port, water as well as electricity networks and distribution.
The study confirmed strong demand from potential customers in the hard-to-abate sectors, local and export markets with the potential to position Australia as a powerhouse of the energy transition.
Analysing the economic opportunity presented by renewable hydrogen will help determine how hydrogen can be scaled up to satisfy future demand, providing end-to-end integrated low-carbon technologies and energy solutions for the wider community.
The impact
Net zero company
The study supports bp’s ambition to become a net zero company by 2050 or sooner and to help the world get to net zero. The project has received funding of AUD2.7 million from BP and a further AUD1.7 million from the Australian Renewable Energy Agency (ARENA) as part of its Advancing Renewables Program.
Frédéric Baudry, BP chief operating officer for Asia Pacific, said: "Western Australia has been selected as the location for the study due, in part, to its vast solar and wind resources, existing port infrastructure and proximity to large, long-term markets for green hydrogen.”
The magic figure is producing hydrogen below USD 2 per kilo and the pathway to getting there is becoming clearer"