A study by BP Australia found that it would be technically feasible to produce green hydrogen and green ammonia at a large scale in Western Australia. According to the study, the region has vast potential solar and wind resources, existing infrastructure, and proximity to potential markets.
Green hydrogen is produced by splitting hydrogen and oxygen from water using renewable energy. Meanwhile, green ammonia is produced by combining green hydrogen and nitrogen from the air. Transporting ammonia has advantages over shipping pure hydrogen.
The feasibility study was first announced in 2020 and was supported by the Australian Renewable Energy Agency (ARENA). It assessed the financial and technical implications for a large-scale, fully-integrated green hydrogen and ammonia supply chain.
The study considered a commercial-scale production of 200,000 tons/year of hydrogen to make up to 1 million tons/year of ammonia. It concluded that the project would require investments in supporting infrastructure, including port, electricity, and water services.
