Feasibility study to be undertaken for green hydrogen project on remote south-east WA coast

Korea Electric Power Corporation’s Chanhyuk Chun, then-WA hydrogen industry minister Bill Johnston, and Western Green Energy Hub's Ray Macdonald with the memorandum of understanding in July 2023. Credit: Western Green Energy Hub/Supplied

The Western Green Energy Hub and South Korea’s largest electric utility the Korea Electric Power Corporation on Monday announced new details of their plan to advance the project west of Eucla on the South Australian border.

The collaboration agreement follows on from the July 2023 memorandum of understanding signed by WGEH and KEPCO, and marks another step towards the negotiation of a joint development agreement.

The parties said the agreement sets out a detailed plan for pursuing a full feasibility study for executing stage one of the project.

It covers advancement of project engineering and cost modelling; collaborative engagement with key Korean and Australian authorities, potential sources of project support; and the integration of respective Australian and Korean firms that might partner in executing the project.

The feasibility study would guide further development work on stage one, which is expected to generate about 6GW of hybrid wind and solar power to produce up to 330,000 tonnes a year of zero emissions green hydrogen.

When first announced in 2021, WGEH was touted as a $100 billion project covering 15,000sqkm, with renewable energy infrastructure generating 50GW for the production of up to 3.5 million tonnes of green hydrogen or 20 million tonnes of green ammonia annually, both for export and use domestically within Australia.

WGEH, the corporate entity developing the project, comprises a consortium of three shareholders — InterContinental Energy and CWP Global, both leading international developers and investors of large-scale green hydrogen hubs; and Mirning Green Energy, a dedicated commercial entity of the Mirning Traditional Lands Aboriginal Corporation.

The development of the project would occur in an area of globally significant underground cave systems, which caving experts and enthusiasts have pledged to protect.

WGEH chief executive Ray Macdonald on Monday said stage one would be potentially significant in positioning Australia as a major participant globally in the emerging green hydrogen sector, as well as contributing to meet emerging demand in the Korean marketplace.

“Progressing a feasibility study with KEPCO, which is a proven global performer with large-scale infrastructure projects, and with its extensive national and international network, is invaluable to realising this potential,” he said.

“The collaboration agreement offers several ‘learning spaces’ where both KEPCO and WGEH will leverage personnel, information, First Nations and government relationships, and industry and market contacts, each of which will be applied to the project.”

Chanhyuk Chun, KEPCO vice-president and head of the global business department said the collaboration agreement enabled the company to tap into the expertise and experience of the WGEH team, as well as to be better prepared for a future in WA and Australia.

WGEH’s prospects have been bolstered recently by the Australian Government announcement of a new $2 per kilogram renewable hydrogen production tax incentive and a clear focus on the renewable hydrogen and green fuels sectors, each part of the government’s $22.7 billion Future Made in Australia initiative.

Also, the South Korean Government will this year launch the world’s first clean hydrogen power bidding market, including a contract for difference scheme to promote “clean hydrogen” within South Korea’s power sector.