The WA Government today announced the next steps for the development of the State’s Renewable Hydrogen Target at the 2022 Australian Hydrogen Conference.
Speaking at the conference, Hydrogen Industry Minister Alannah MacTiernan said the WA Government had made a number of key decisions on the Renewable Hydrogen Target following stakeholder consultation that opened in October 2022.
The Renewable Hydrogen Target will aim to drive local demand and assist emerging hydrogen production projects, which are essential to developing the State’s hydrogen industry.
The initial Target will seek to have hydrogen comprise one per cent of the South-West’s electricity generation and represents an important first step in the development of a broader use-agnostic Renewable Hydrogen Target scheme.
Stakeholder feedback on the preliminary design of the target for electricity generation in the South West Interconnected System (SWIS) showed that further work is required to ensure the scheme balances providing benefits to the SWIS with demand stimulation.
Energy Policy WA will undertake a study into the role of renewable hydrogen in the SWIS, targeting areas such as long-term storage and peaking generation, to inform further work on outstanding design elements, including how certificates are created, the determination of liable entities, and identification of a regulatory agency.
To address stakeholder feedback on other potential uses of renewable hydrogen, the Department of Jobs, Tourism, Science and Innovation will simultaneously lead the development of a broader Renewable Hydrogen Target scheme.
The broader use-agnostic scheme will consider all potential use cases for renewable hydrogen, including transport, industrial feedstock, electricity generation, and pipeline blending.
It is expected to allow for certificates to be created for renewable hydrogen produced for any purpose, such as the replacement of grey hydrogen used for industrial purposes or road transport, allowing the market to develop and deliver hydrogen at a lower cost to consumers.
Energy Policy WA and the Department of Jobs, Tourism, Science and Innovation will report back to Government in mid-2023 on next steps and timelines.
As stated by Energy Minister Bill Johnston:
“Thanks to all stakeholders who provided input into the investigation of the Renewable Hydrogen Target for electricity generation in the SWIS.
“Feedback is being used to progress to detailed design of a Renewable Hydrogen Target for the SWIS, which will support a one percent target for use of renewable hydrogen in the SWIS.
“Renewable hydrogen will be an important part of the SWIS future fuel mix.”
As stated by Hydrogen Industry Minister Alannah MacTiernan:
“The investigation of a Renewable Hydrogen Target for electricity generation in the SWIS was an important first step in stimulating local demand and support emerging renewable hydrogen production projects.
“Work will concurrently progress on the development of a broader Renewable Hydrogen Target scheme, which considers all potential use cases for renewable hydrogen and will incorporate valuable stakeholder feedback from our consultation.
“The findings of the investigation into a Renewable Hydrogen Target for electricity generation in the SWIS will also be incorporated into the evaluation and refresh of the Western Australian Renewable Hydrogen Strategy.
