Western Australia considers renewable hydrogen target

Rendered image of hydrogen molecules (hydrogen rules)
Image: Shutterstock

The Western Australian Government says it is supporting the growth of a renewable hydrogen industry in the state by investigating the implementation of a Renewable Hydrogen Target.

This approach would set targets for retailers in the South West Interconnected System (WA’s main electricity grid) to procure a certain percentage of electricity fuelled by renewable hydrogen, creating a local market which would support emerging hydrogen projects and improve grid stability.

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The design of the Renewable Hydrogen Target will draw on the elements of the Commonwealth Government’s Renewable Energy Target, which has successfully incentivised investment in renewable energy since 2001.

The WA Government will work with industry to scope options for implementing the target, including electricity consumers, hydrogen producers, related industries and the wider community.

Engaging industry and other stakeholders will be crucial to maximising the benefits to WA and supporting the long-term growth of our local renewable hydrogen industry, and maximising the integration of renewable energy in WA’s main electricity grid.

Energy Minister Bill Johnston said, “Renewable hydrogen will play an important role in our energy mix as we move to a lower carbon future in line with the Western Australian Climate Policy.

“Western Australia’s world-class renewable energy resources provide a considerable advantage in the production of renewable hydrogen.

“A Renewable Hydrogen Target may also prepare Western Australia to transition from natural gas electricity turbines to hydrogen turbines to stabilise our electricity grid.”  

Hydrogen Industry Minister Alannah MacTiernan said, “Renewable hydrogen offers an incredible opportunity to reduce emissions while supporting local jobs and delivering long-term wealth for Western Australians.

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“A Renewable Hydrogen Target for generators on the South West Interconnected System will help stimulate local demand and support emerging renewable hydrogen production projects.

“The McGowan Government has committed $160 million to support the development of the renewable hydrogen industry in WA, and is on track to meet the 2022 goals set out in the Western Australian Renewable Hydrogen Strategy.”

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