Renewable hydrogen target to be investigated for Western Australia
The WA State Government is supporting the growth of a renewable hydrogen industry by investigating the implementation of a Renewable Hydrogen Target in the state.
A Renewable Energy Target would set goals for retailers in the South West Interconnected System (WA's main electricity grid) to procure a certain percentage of electricity fuelled by renewable hydrogen, creating a local market which would support emerging hydrogen projects and improve grid stability.
The design of the Renewable Hydrogen Target will draw on the elements of the Commonwealth Government's Renewable Energy Target, which has successfully incentivised investment in renewable energy since 2001.
The WA Government will work with industry and other stakeholders to scope options for implementing the target, including electricity consumers, hydrogen producers, related industries and the wider community. The design work is expected to be finalised late 2022.
Engaging industry and other stakeholders will be crucial to maximising the benefits to WA and supporting the long-term growth of our local renewable hydrogen industry, and maximising the integration of renewable energy in WA's main electricity grid.
"Renewable hydrogen will play an important role in our energy mix as we move to a lower carbon future in line with the Western Australian Climate Policy," Said WA Energy Minister Bill Johnston.
"Western Australia's world-class renewable energy resources provide a considerable advantage in the production of renewable hydrogen."
"A Renewable Hydrogen Target may also prepare Western Australia to transition from natural gas electricity turbines to hydrogen turbines to stabilise our electricity grid."