APA, WesCEF to study green hydrogen via gas pipeline in Western Australia

Australian energy infrastructure company APA Group (ASX:APA) and Wesfarmers Chemicals, Energy and Fertilisers (WesCEF), part of Australian conglomerate Wesfarmers Ltd (ASX:WES), will look into the possibility of producing and transporting green hydrogen to WesCEF’s production facilities in the Kwinana industrial area in Western Australia.

The companies have signed a memorandum of understanding (MoU) to conduct a pre-feasibility study into the idea. The green hydrogen would be transported through APA’s Parmelia gas pipeline in what could see the conversion of a section of the pipeline to a 100% green hydrogen service.

“This study could be a game-changer for the transportation of green hydrogen by supporting Australia’s first potential conversion of a natural gas transmission pipeline to 100% hydrogen-ready,” said APA chief executive and managing director Rob Wheals.

“Hydrogen won’t be delivered at scale through trucks and trains – we will need large scale interconnected networks which can bring the benefit of resources to our industry hubs, cities and homes,” added Wheals.

The MoU follows a research indicating that 43 kilometres (26.7 miles) of the Parmelia gas pipeline could be used to carry up to 100% hydrogen. A second phase of pressurised hydrogen testing will be completed over the next 12 months.

Bringing green hydrogen to WesCEF’s facilities in Kwinana could support the production of green ammonia and other sustainable chemicals. The WesCEF sites there deliver products for the agricultural, mining, construction and manufacturing sectors, as well as energy for households for cooking, heating and hot water.

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