In an effort to support the development of Western Australia’s renewable hydrogen industry, the State Government is exploring the possibility of a Renewable Hydrogen Target.

This approach would set targets for retailers in the South West Interconnected System (Western Australia’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 Federal Government’s Renewable Energy Target, which has successfully incentivised investment in renewable energy since 2001.

The Western Australian Government will work with industry to scope options for implementing the target, including electricity consumers, hydrogen producers, related industries and the wider community.

Western Australian Hydrogen Industry Minister, Alannah MacTiernan, said renewable hydrogen would offer an “incredible opportunity to reduce emissions while supporting local jobs and delivering long-term wealth for Western Australians”.

“The McGowan Government has committed $160 million to support the development of the renewable hydrogen industry in Western Australia, and is on track to meet the 2022 goals set out in the Western Australian Renewable Hydrogen Strategy,” Ms MacTiernan said.

Engaging industry and other stakeholders will be crucial to maximising the benefits to Western Australia and supporting the long-term growth of its local renewable hydrogen industry, and maximising the integration of renewable energy in the state’s main electricity grid.

Western Australia Energy Minister, Bill Johnston, said renewable hydrogen will play an important role in the state’s energy mix.

“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,” Mr Johnston said.

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