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Woodside takes hydrogen drive to the US

Tuesday, December 7th, 2021

Australian energy major Woodside Energy on Tuesday unveiled plans to expand its portfolio of hydrogen production opportunities to the US, with the aim of starting production in 2025.

The company told shareholders that it had secured land in Oklahoma for the future development of a modular hydrogen facility and had entered into a memorandum of understanding (MoU) with hydrogen powered commercial vehicle provider, Hyzon Motors.

Woodside has secured a lease and option to purchase 38 ha of vacant land in Ardmore, to underpin the future development of its proposed H2OK project. The company is also progressing similar land acquisition opportunities aligned to growth markets in the US.

The H2OK project involves construction of an initial 290 MW facility, which will use electrolysis to produce up to 90 t/d of liquid hydrogen for the heavy transport sector. The location offers the capacity for expansion up to 550 MW and 180 t/d.

Woodside has completed preliminary design of the modular, scalable production facility and is evaluating tenders to enable commencement of front-end engineering design before the end of this year.

The project is targeting a final investment decision in the second half of 2022, and first liquid hydrogen production in 2025, subject to approvals and customer demand.

Woodside is also taking a proactive role in developing the US and Australian hydrogen markets, entering an MoU with Hyzon Motors, with the two companies intending to explore opportunities to work together on demand stimulation, supply and infrastructure solutions, and coordinated advocacy.

Woodside CEO Meg O’Neill said H2OK and collaborative arrangements like the Hyzon MoU were part of the company’s strategy to deliver new energy projects that were cost-competitive and scalable to meet customer demand, noting the significant potential for growth in the US hydrogen market.

“With H2OK we will be bringing Woodside’s extensive liquefaction experience from liquefied natural gas (LNG) to deliver large-scale hydrogen production.

“H2OK will be located in a highly prospective part of the US market, close to national highways and the supply chain infrastructure of major companies that have signalled their interest in securing reliable, affordable and lower carbon energy.

“Following the completion of Woodside’s proposed merger with BHP’s petroleum business, we will have a significant presence in the North American market and we expect new energy opportunities to be a growing component of our portfolio,” she said.

Woodside has already announced plans to develop phased hydrogen and ammonia production projects in Perth and northern Tasmania to supply both Australian and international markets, leveraging capabilities built over decades of reliable and affordable LNG production and supply.

Woodside also announced in October a new collaboration with renewable energy technology company Heliogen, involving the proposed construction of a 5 MW commercial-scale demonstration facility in California using Heliogen’s concentrated solar power technology.

https://www.miningweekly.com/article/woodside-takes-hydrogen-drive-to-the-us-2021-12-07
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