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Western Australia could become renewable hydrogen hub for European demand

Western Australia could become renewable hydrogen hub for European demand
Scientists at Fraunhofer ISE have investigated the suitability of sites for the production of renewable electricity for the industrial region of Oakajee. This graphic shows the suitability for onshore wind turbines around Oakajee. Credit: Fraunhofer ISE

The Port of Rotterdam and the Fraunhofer Institute for Solar Energy Systems ISE are working with Australian partners to investigate opportunities for Western Australia to become a world-class producer, user and exporter of renewable hydrogen. Western Australia could provide for a substantial portion of the European demand for hydrogen in 2050.

The TrHyHub Study, a collaboration between key stakeholders in Australia, Germany, and the Netherlands, analyzed the critical components that could deliver a supply chain from the Mid West Hydrogen Hub in Oakajee to Germany via the Port of Rotterdam.

In the short term, ammonia is the most suitable option, with substantial cost savings to be anticipated in the future.

With its strategic positioning and renewable energy capabilities, the Mid West Hydrogen Hub, which is centered around the Oakajee Strategic Industrial Area (SIA) and proposed Port, stands as a key hub for renewable industry growth in Western Australia. Oakajee has also been identified as a potential location for a major deepwater port.

The TrHyHub Study analyzed the technical design, location, and feasibility of ammonia export infrastructure situated in the Oakajee port. A geographic information system analysis by Fraunhofer ISE revealed that the land within a 350-kilometer radius of the Oakajee SIA has significant potential for large-scale renewable electricity generation.

The area theoretically allows for a maximum power output of 10,000 terawatt-hours (TWh) from solar technology, and 5,700 TWh from onshore wind energy. If fully developed, this translates to a theoretical hydrogen production of 185 million tons per annum (Mtpa) from solar and 105 Mtpa from wind power.

Hydrogen production of this scale would provide for a substantial portion of the European demand for hydrogen in 2050. The planned renewable ammonia production capacity could reach over 15 Mtpa, equivalent to the current European ammonia production.

Significant potential for cost reduction

In their work package, researchers from Fraunhofer ISE investigated the supply chain and the associated specific technological solutions that should enable the export of green hydrogen. They modeled the production of renewable hydrogen and derivatives and the transport of the derivatives, including means of transport, transportation costs and time.

“Our techno-economic analysis of an ammonia supply chain to Germany confirmed that the cost component related to the long distance does not constitute a significant cost factor, accounting for only 9% of the total cost of production and delivery. The higher shipping cost is offset by the significant solar and wind resources which lead to significantly lower costs of production and storage,” explains study author Marius Holst from Fraunhofer ISE.

To further reduce the cost of the ammonia supply chain, more research is needed on the operation window of ammonia. Fraunhofer ISE is working on new ammonia synthesis processes that will reduce the cost of renewable ammonia. The institute also works on optimization and process development to produce fuels, chemicals and energy sources as well as on new technologies for the direct use of ammonia.

The team also investigated the export of liquid hydrogen and methanol to Germany. Both products face technical and economic barriers to export, such as a lack of commercially available transport vessels for hydrogen and the need for significant upscaling of production plants to reduce costs. “The market ramp-up is the decisive factor in reducing costs, so we need to get into large-scale production quickly now,” explains Robert Szolak, head of department at Fraunhofer ISE.

Germany as a major offtake market

Following the European Commission’s REPowerEU plan launched in 2022, the European Union set a target of importing up to 10 million tons of renewable hydrogen by 2030 to replace fossil fuels in all sectors across Europe.

With a national consumption of hydrogen of approximately 1.6 mtpa across various production industries, 90% of which is currently fossil-sourced, Germany’s National Hydrogen Strategy announced its aim to shift these sectors, along with steel production and parts of the transportation sector, to renewable hydrogen. With limited production capacities for renewable hydrogen, Germany will need to import most of the required quantities.

The TrHyHub study found that renewable ammonia as the most prevalent hydrogen carrier in the short term could be imported through the Port of Rotterdam. Rotterdam is well-suited because of its extensive logistics connections to the most promising offtake regions in Germany, notably North Rhine-Westfalia and Ludwigshafen.

In September 2024, Australia and Germany signed a historic deal to advance their cooperation in new green hydrogen supply chains through a funding window to guarantee European buyers for Australia’s renewable hydrogen producers. The Joint Declaration of Intent to negotiate the €400 million deal, equally funded by the governments of both countries, will form part of Germany’s H2 Global auction mechanism.

Provided by
Fraunhofer-Institut für Solare Energiesysteme ISE

Citation:
Western Australia could become renewable hydrogen hub for European demand (2025, May 7)
retrieved 7 May 2025
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