The Western Australian hydrogen industry is set to receive a substantial boost with the Albanese Government’s A$70 million investment in the H2Kwinana Hydrogen Hub, heralding a new phase in the state’s clean energy development.

The investment forms part of the broader Regional Hydrogen Hubs program, a $526 million initiative designed to promote the development of hydrogen hubs in ports, cities or regional or remote areas, promoting efficiencies from economies of scale, fostering innovation and promoting cross-sector cooperation.

“Investing in an Australian hydrogen industry is investing in Australia’s future,” said Federal Minister for Climate Change and Energy Chris Bowen.

“Kwinana has been an industrial and economic powerhouse for decades, making it an ideal location for a hydrogen hub that can support decarbonisation of heavy industry and connect our renewable resources to the world.

“These projects are the next step towards using locally produced renewable hydrogen in Australia to reduce our industrial emissions and develop a renewable export future.”

Decarbonising WA’s industrial sector

The funding is intended to facilitate the Kwinana Hub’s progression to Front-End Engineering and Design (FEED), a critical stage in project development.

The investment is poised to generate regional employment opportunities and aid in decarbonising WA’s industrial sector.

The H2Kwinana Hydrogen Hub, spearheaded by BP Australia, is expected to create 150 jobs and will feature a 100-megawatt (MW) electrolyser, scalable up to a total production capacity of 1.5 gigawatts (GW).

Site works for H2Kwinana are in progress with the project’s completion anticipated by mid-2027.

Upon becoming operational, the hub is projected to produce more than 14,000 tonnes of green hydrogen annually, primarily for industrial usage and heavy transport.

This production capacity equates to fuelling approximately 750 vehicles annually within Australia’s heavy vehicle fleet.

“Western Australia is one of the world’s great energy producers and thanks to our wealth of natural resources and talent pool of skilled workers, we are ready to become a world-class, low-cost hydrogen supplier,” said Federal Minister for Resources Madeleine King.

“Kwinana has long been the powerhouse of the Western Australian economy and this investment will ensure Kwinana remains the state’s powerhouse into the future.

“WA’s renewable hydrogen industry will diversify and decarbonise our economy and create jobs in Perth and in the regions.”

With the hydrogen industry in Australia expected to contribute an additional A$50 billion to the Gross Domestic Product (GDP) by 2050, this sector is set to create tens of thousands of jobs, particularly in regional areas, as the country transitions to a renewable energy superpower.

Extracted in full from: