The Western Australian Government is investigating the implementation of a Renewable Hydrogen Target, requiring a percentage of electricity in the South West Interconnected System (SWIS) to be fuelled by renewable hydrogen.
The State Government will work with industry and other stakeholders to investigate and develop options for the detailed design of the Target
The design work is expected to be finalised by late 2022.
The approach aims to set targets for retailers in the SWIS (Western Australia’s main electricity grid) to procure a certain percentage of electricity fuelled by renewable hydrogen, creating a local market that would support emerging hydrogen projects and improve grid stability.
The design of the Renewable Hydrogen Target will draw on the elements of the Federal Government’s Renewable Energy Target, which has incentivised investment in renewable energy since 2001.
The Western Australian 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 Western Australia and supporting the long-term growth of our local renewable hydrogen industry, and maximising the integration of renewable energy in Western Australia’s main electricity grid.
Western Australia 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.”
Western Australia 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.
“A Renewable Hydrogen Target for generators on the SWIS 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 Western Australia, and is on track to meet the 2022 goals set out in the Western Australian Renewable Hydrogen Strategy.”