Australia's Green Hydrogen Development at Oakajee SIA by Xodus
Key Ideas
  • The Western Australian Government allocated land in Oakajee SIA to Xodus for a green hydrogen and ammonia development project under the name Warradarge Energy.
  • The project aims to supply domestic hydrogen to decarbonize mining and heavy transport initially, with plans to expand into an ammonia export project.
  • Xodus and Warradarge Energy are collaborating closely with industry partners to ensure a robust and scalable hydrogen supply chain.
  • The Federal Government's hydrogen production tax incentive and Western Australia's ambition to lead in clean hydrogen underline the support for projects like these.
The Western Australian Government has granted land in the Oakajee Strategic Industrial Area (SIA) to Xodus for the development of a large-scale green hydrogen and ammonia project. This initiative, previously named Project MercurHy and now operating under Warradarge Energy, is set to be executed in two main phases. The primary focus initially is on providing domestic hydrogen to reduce emissions in the mining and heavy transport sectors. The project's second phase involves expanding into an ammonia export project within the Oakajee SIA. Xodus and its partners have made significant progress, securing over 16,000 hectares of land at Warradarge and negotiating power supply agreements with an existing wind farm. The project is expected to benefit from competitive pricing for renewable power supply and a favorable market price. Simon Allison, VP - Asia Pacific at Xodus and Strategic Advisory Board Member at Warradarge Energy, highlighted the importance of this development in Australia's journey to become a significant player in the clean hydrogen market. Furthermore, the Federal Government's recent legislation introducing a hydrogen production tax incentive of $2 per kilogram for eligible producers until 2040 showcases support for renewable hydrogen projects. With Australia striving to lead in the hydrogen sector, projects like Warradarge Energy play a crucial role in driving the country towards a low-carbon future. Stephen Archer, CEO of Warradarge Energy, emphasized the project's role in advancing the hydrogen supply chain, reducing technology risks, and lowering costs. The collaboration between Xodus, Warradarge Energy, industry partners, and governmental support highlights a positive outlook for the project's success. This venture not only accelerates the transition to renewable energy but also contributes to economic growth and sustainability in Australia and potentially on a global scale.
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