The Western Australian Government has allocated land in the Oakajee Strategic Industrial Area (SIA) to global energy consultancy Xodus to support the development of a commercial scale green hydrogen and ammonia development.
Xodus said the land allocation paves the way for the company and its partners to progress the project, formerly known as Project MercurHy, under the Warradarge Energy banner.
First announced in 2022, the project will be executed in two primary phases, initially focusing on domestic hydrogen supply to decarbonise the mining and heavy transport sectors.
There is an ambition to scale the development further into an ammonia export project located at the Oakajee SIA.
Xodus said the initial phase is well advanced, with over 16,000ha of land secured at Warradarge, power supply agreements with an existing wind farm under negotiation and offtake partners onboard.
The project is also expected to benefit from a competitively priced, behind-the-meter renewable power supply, high plant utilisation and a high comparative market price.
Simon Allison, VP – Asia Pacific at Xodus and Strategic Advisory Board Member at Warradarge Energy, said, “This is a major step forward, not just for Warradarge Energy, but also in Australia’s quest to be one of the world’s dominant clean hydrogen players.
“Xodus has played a central role in the technical and commercial development of the project, overseeing feasibility, concept design, approvals and the integration of renewable energy sources,” he said.
“We have worked hand in glove with the Warradarge Energy team, as well and industry partners and landowners to ensure we are delivering a development underpinned by a robust and scalable hydrogen supply chain.”
Western Australia has an ambition to be a global hydrogen leader, with the State Government recently calling for new investments at a global hydrogen summit.
In February the Federal Government passed legislation to pay eligible producers a hydrogen production tax incentive (HPTI) of $2 per kilogram under the Future Made in Australia (Production Tax Credits and Other Measures) Bill. The incentive is available to renewable hydrogen producers for up to 10 years, between 1 July 2027 and 30 June 2040.
Stephen Archer, CEO Warradarge Energy, said, “Scalable, high-quality renewable energy projects like ours are needed to bridge the gap between today’s demonstration sized facilities and the gigawatt-scale hydrogen developments of the future. This project is about accelerating the supply chain, minimising technology risks, and driving down costs.
“It’s an exciting venture that we’ve built from the ground up, bringing in the right partners to achieve collective success. With our expertise, we’re actively designing and delivering the low-carbon, economically viable projects that Australia and the world need now more than ever.”
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