Western Australia examines blending, storage options as hydrogen strategy advances

The Western Australian government published two reports Jan. 19 examining the steps needed to ensure the successful transmission and storage of hydrogen in the state.

One report is focused on the feasibility of blending hydrogen into the state's Dampier to Bunbury gas pipeline network, at 1,530-km the longest natural gas pipeline in Australia. The other looks at the potential for hydrogen storage in depleted oil and gas fields.

"The two reports we have released today identify steps for making sure we have the infrastructure required for the transmission and storage of hydrogen in Western Australia," the state's Hydrogen Industry Minister Alannah MacTiernan said.

"As we start producing more and more hydrogen, we need to know how we are going to safely move and store it around the state," the minister said.

The Dampier to Bunbury gas pipeline study outlines a process for identifying sections of the pipeline suitable for up to 9% blending of hydrogen. The study was carried out by the Australian Gas Infrastructure Group (AGIG).

While no specific non-metallic material concerns were apparent at this level of blending, there was a need for a more detailed review of specific non-metallic materials installed in the system, the report said.

Further, a gap in research on fatigue performance of polymers when exposed to hydrogen needed assessing.

"AGIG will progress with further studies into these areas of assessment to facilitate the transition pathway," it said.

The report said five legal instruments would need amending before blending of hydrogen above a certain level could proceed, including the National Gas Law, Work Health and Safety (Petroleum and Geothermal Energy Operations) Regulations and the Petroleum Pipelines Act 1969.

Distance challenge for storage

The second study into hydrogen storage potential screened 23 depleted onshore gas and oil fields in the state, of which seven were identified as suitable for hydrogen storage.

The mapping of renewable energy hubs relative to the subsurface sites showed there was ample storage capacity in the Perth Basin. The hubs are to provide feedstock to electrolyzers.

However, the state's two biggest proposed hub projects – the 50 GW Western Green Energy Hub (WGEH) and the 26 GW Asian Renewable Energy Hub (AREH) - were located over 1,000 km away from suitable depleted fields.

Subsurface salt basin storage for the AREH project offered some promise, the report said, even if the Canning Basin containing the thickest known salt deposits in Australia was still 200-km away.

No known salt deposits were near the WGEH hub either, although the Officer Basin 300-km north was reported to contain salt deposits, the report said.

As such, surface storage options should also be considered, it said.

The report identified the gas fields in Xyris, Yardarino and Beharra Springs near Perth as the best locations for storage with high capacity.

Potential hydrogen salt cavern storage sites were in Dongara and Gingin, close to the Clean Energy Innovation Hub and Arrowsmith Hydrogen Plant near Perth, and Tubridgi, close to the HyEnegy project.

In summary, the report estimated the demand for hydrogen storage in Western Australia at 5 Bcf to 50 Bcf and this storage would ideally be distributed across a number of locations adjacent to the various hydrogen projects.

Bold hydrogen strategy

Western Australia aims to be a major domestic producer and exporter of renewable hydrogen, as set out in its revised 2021 hydrogen strategy.

Under the strategy the state intends this year to approve an export project, start renewable hydrogen production in one remote location, distribute renewable hydrogen in a state gas network and start a refueling station for hydrogen vehicles.

S&P Global Platts assessed the price of hydrogen (Western Australia, PEM electrolysis) at $4.22/kg Jan. 18, while Western Australia alkaline electrolysis hydrogen was assessed at $2.845/kg.

These prices were lower compared to much higher prices in Japan at $17.03/kg and $14.05/kg for PEM and alkaline production pathways. Japan is a key target market for Australian hydrogen exports.