Energy consultancy Xodus has been allocated land in the Oakajee Strategic Industrial Area (SIA) in Western Australia, marking a significant advancement in the development of a commercial-scale renewable hydrogen and ammonia project.
This initiative enables Xodus and its partners to advance the project, previously referred to as Project MercurHy, under the name Warradarge Energy.
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The project, initially announced in 2022, will be executed in two primary phases, with the initial focus on domestic hydrogen supply to decarbonise the mining and heavy transport sectors.
The ambition is to scale up the development into an ammonia export project, leveraging the strategic location of the Oakajee SIA.
The first phase is well underway, with more than 16,000 hectares of land secured at Warradarge, negotiations for power supply agreements underway with an existing wind farm, and offtake partners already on board.
Xodus Asia Pacific vice-president and strategic advisory board member at Warradarge Energy Simon Allison stated: “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.
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By GlobalData“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.
“We have worked hand-in-glove with the Warradarge Energy team, industry partners and landowners to ensure we are delivering a development underpinned by a robust and scaleable hydrogen supply chain.”
The Australian hydrogen market, valued at more than A$225bn ($146bn), is witnessing an increasing number of green hydrogen projects.
The Australian government has further supported the industry by announcing a hydrogen production tax incentive (HPof $2 per kilogram under the Future Made in Australia legislation, available to renewable hydrogen producers for up to ten years, from 1 July 2027 to 30 June 2040.
Warradarge Energy CEO Stephen Archer said: “Scaleable, 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.”
