InterContinental Energy's AREH hydrogen project sticks with 2027-28 production target

InterContinental Energy is confident it can still hit a 2027-2028 start date for production from the 26-GW Asian Renewable Energy Hub (AREH) in Pilbara, Western Australia, the company's Head of Australia, Brendan Hammond told S&P Global Platts Dec. 14.

In June, Australia's Minister for the Environment Sussan Lay told InterContinental Energy and its partners an environmental referral for the massive renewable hydrogen project would not proceed in its current form.

"We are continuing to develop the project from an engineering perspective and we will take the concerns raised [by the ministry] into account," Hammond said, ahead of making a fresh application in the future. As such, a 2025 financial closure goal for the project stood as before, he said.

The $36 billion project, involving partners CWP Asia, Vestas, and Pathway Investments, is scaled to produce 1.8 million mt/year of renewable hydrogen and up to 10 million mt/year of green ammonia.

InterContinental Energy announced another megaproject in July, the 50-GW Western Green Energy Hub (WGEH) located in the southern tip of Western Australia. It also has plans for a 25-GW project in Oman focused on green ammonia exports.

State support

On Nov. 25, the Western Australia government announced an investment of A$117.5 million ($83.42 million) aimed at securing matched funding from the commonwealth government for developing hydrogen hubs in the Pilbara region and mid-west of the state.

InterContinental Energy was one of the supporting companies in the state government's bid to secure federal funding, Hammond said.

The company had not yet placed orders for solar, wind or electrolyzer plants but was in talks with Korea, Japan, Singapore and the EU on the future supply of hydrogen and ammonia, he said.

Escalating costs were an issue, making a renewable hydrogen target price of $2/kg a challenge, but Hammond said the scale of InterContinental Energy's hydrogen production plans would exert downward pressure on future costs.

Australia's Department of Industry, Science, Energy and Resources forecasts clean hydrogen costs to decline to between A$2-A$4/kg by 2030.

"If our current pipeline of clean hydrogen projects is completed on time, Australia could be one of the world's largest hydrogen suppliers by 2030," the department's recent State of Hydrogen report said.

Platts assessed Western Australia hydrogen produced via PEM electrolysis (including capex) at A$5.16/kg Dec. 13, up 3.61% from Nov. 12.

This story has been amended to reflect upper case C in InterContinental Energy.