Woodside inks Tasmania hydrogen deals

Australian LNG firm Woodside Energy said Thursday it signed a memorandum of understanding with Tasmania to develop hydrogen projects in the island state.

The memorandum outlines the Tasmanian government’s support for the proposed H2TAS project, a renewable hydrogen production facility at Bell Bay that capitalises on the state’s advantage in green energy, Woodside said.

In parallel, Woodside has executed a non-binding term sheet with Tasmanian natural gas retailer Tas Gas to develop a framework for blending and for the potential associated sale of green hydrogen into the Tasmanian gas network.

Woodside CEO Peter Coleman said the agreement highlighted the Tasmanian government’s commitment to becoming a leader in large-scale renewable hydrogen production, decarbonising the challenging sectors in the Australian state’s economy.

“Woodside shares the Tasmanian government’s net-zero aspiration and welcomes the government’s leadership in supporting the growth of a domestic hydrogen industry. The government has taken concrete actions such as creating the Tasmanian renewable hydrogen action plan, establishing the Tasmanian renewable hydrogen fund and signing this MOU, ” he said.

According to the CEO, Woodside will work beyond feasibility studies. The firm is targeting hydrogen production at H2TAS in the first half of 2023, following a targeted final investment decision in the third quarter of 2021.

In addition, the term sheet with Tas Gas marks “another significant milestone” for H2TAS, the only Tasmanian project among seven shortlisted in the Australian Renewable Energy Agency’s $70 million renewable hydrogen deployment funding round.

Tas Gas CEO Phaedra Deckart said Tas Gas is committed to helping reduce emissions through exploring the use of green gases such as hydrogen.

“Our networks are relatively new and capable of safely conveying hydrogen, unlike older systems across Australia,” she said.  

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