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Woodside Petroleum said it has secured land for a new green hydrogen and ammonia plant in Australia, a key step in advancing the project ahead of an expected final investment decision in 2023.
The plant, dubbed H2TAS, would be built in the Bell Bay region of Tasmania, an island state in Australia's south that is rich with hydropower and wind power.
The land deal marks another step forward in Woodside’s plans for large-scale production of renewable hydrogen and ammonia.
Phased Development
Woodside said H2TAS will be a phased development with the potential to support up to 1.7 gigawatts of electrolysis for hydrogen and ammonia production. It would use a combination of hydropower and wind power to create a 100% renewable ammonia product for export as well as renewable hydrogen for domestic use.
The initial phase would have a capacity of up to 300 megawatts and target production of 200,000 tons per year of ammonia. Small volumes of hydrogen and ammonia would be available for the local market as it develops.
Construction and commissioning are expected to take about 24 months.
It would be Woodside's second ammonia and hydrogen project in Australia. The company last month announced plans for a project in Western Australia called H2Perth. That project includes a hydrogen plant with a capacity of up to 1,500 tons per day.
Unlike H2TAS, which would rely on renewable energy, the Perth scheme would produce ammonia and hydrogen using both electrolysis and natural gas reforming, with 100% of the resulting carbon emissions abated or offset.
Government Support
The Tasmanian government says the project complements the state’s unique position of being 100% self-sufficient in renewable energy. It has a legislated target to be 200% self-sufficient by 2040.
The government is pushing for Bell Bay to be a renewable hydrogen hub and a globally significant hydrogen exporter by 2030.
Woodside has not disclosed cost estimates for the Tasmanian project, but will likely seek financial support from the government.
Woodside is working on the Tasmania project as part of a consortium with Japanese companies Marubeni and IHI Corp. Much of the ammonia would be exported to Japan.
Resource-scarce Japan is a key market for hydrogen and ammonia as the country strives to achieve its net-zero emissions by 2050.
Woodside CEO Meg O’Neill said H2TAS is aligned with the company’s strategy of developing new energy projects that are customer-led and scalable to market demand.
“H2TAS is already garnering interest from existing and prospective Woodside customers in Asia and Europe,” she said.
Clara Tan, Singapore
Critical Egypt-Lebanon Gas Project Progresses
A controversial project that will see Egyptian natural gas piped to Lebanon via regional pariah Syria is progressing well, a Lebanese source tells Energy Intelligence.
The project, backed by the US to help staunch economic collapse in Lebanon, is a potential geopolitical game changer. By allowing Syria to claim transit fees, it would represent an informal waiver of sanctions applied under the Caesar Act, which are meant to pressure the regime of Syrian President Bashar al-Assad.
Some see the project as a first step in reintegrating Syria back into the region.
The project would send some 650 million cubic meters per year of gas to fuel a 500 megawatt power station near the northern Lebanese city of Tripoli.
The scheme would minimize exposure to Syria’s fraught security situation — no gas has been pumped along this route since 2010.
“Surveys are ongoing and hopefully the project will start by year's end or very early in the new year,” the source said.
No actual Egyptian gas will reach Lebanon — it will be pumped across the Jordan-Syria border and Damascus will send an equivalent volume from its central fields to Lebanon, according to the source.
But the Egyptian gas stream will almost certainly include molecules that have been exported to Egypt from Israel — Syria’s mortal foe — and then mixed in with the common Egyptian gas pool. However, the Lebanese source says Cairo has “given a guarantee that the gas will come just from Egyptian fields.”
Pricing Talks
Bankrupt Lebanon has been unable to pay for the gas; US support has been key in getting World Bank funding for the project.
Discussions on pricing are ongoing. Pricing will be linked to oil with “a floor something around $6 per million Btu, and a ceiling something around $10 per [million] Btu,” the source said.
In addition to the gas deal, there are also discussions on electricity swaps involving, Egypt, Jordan, Syria and Lebanon.
Border Dispute
The US effort has been spearheaded by Envoy Amos Hochstein, a former diplomat and executive at LNG firm Tellurian. Hochstein is also pushing for a resolution in the dispute over the Lebanon-Israel maritime boundary.
The Lebanese source says there has been no link between the gas imports and Beirut’s acquiescence in a border deal. The source said Hochstein has given a time limit to reach a border deal, although reports of a three-month deadline could not be confirmed.
A border agreement is important for both sides. Both Block 9 in Lebanon (operated by TotalEnergies) and Israel's offshore Karish field (led by Energean) are in the disputed zone. Lebanon is hoping to see the first Block 9 well spud next year.
The 7.4 billion cubic meter per year Karish development has been delayed by the Covid-19 pandemic, although security concerns likely have also played a role, according to the source.
At any rate, a border agreement would be a boost for the project, which will be important for meeting future Israeli energy demand.
Bid Round Still Open
A second Lebanese bidding round, launched last April, remains open, said the source.
Low oil prices last year resulted in no bids for the blocks, but the source said higher prices could galvanize investor interest.
Terms have been improved. A bid bond guarantee was reduced from $5 million to $500,000 and cost recovery was increased from 65% to 80%, the source said.
Source: energyintel.com
