Australian liquefied natural gas (LNG) developer Woodside (ASX:WPL) is expanding its portfolio of hydrogen production opportunities to the US as it eyes North America’s heavy transport sector.
Woodside said today that it has secured land in Oklahoma for future development of a modular hydrogen facility, as well as entered a memorandum of understanding with Hyzon Motors, a New York-based supplier of zero emissions hydrogen fuel cell-powered commercial and heavy transport vehicles.
Woodside has secured a lease and option to purchase 94 acres of vacant land in Ardmore, Oklahoma, to underpin future development of its proposed H2OK project. Woodside said it is also progressing similar land acquisition opportunities aligned to growth markets in the US.
Woodside CEO Meg O’Neill said H2OK and collaborative arrangements like the Hyzon MoU are part of the company’s strategy to deliver new energy projects that are cost-competitive and scalable to meet customer demand, noting the significant potential for growth in the US hydrogen market.
“With H2OK we will be bringing Woodside’s extensive liquefaction experience from LNG to deliver large-scale hydrogen production,” she said.
“H2OK would be located in a highly prospective part of the US market, close to national highways and the supply chain infrastructure of major companies that have signaled their interest in securing reliable, affordable and lower carbon energy,” added O’Neill.
“Following the completion of Woodside’s proposed merger with BHP’s petroleum business, we would have a significant presence in the North American market, and we expect new energy opportunities to be a growing component of our portfolio,” she said.
Subject to approvals and customer demand, the H2OK concept involves construction of an initial 290- megawatt (MW) facility, which will use electrolysis to produce up to 90 tonnes per day (tpd) of liquid hydrogen for the heavy transport sector.
The location offers the capacity for expansion up to 550 MW and 180 tpd.
Woodside has completed preliminary design of the modular, scalable production facility and is evaluating tenders to enable commencement of front-end engineering design before the end of this year. The project is targeting a final investment decision in the second half of 2022, and first liquid hydrogen production in 2025.
Meanwhile, Woodside and Hyzon intend to explore opportunities to work together on demand stimulation, supply, and infrastructure solutions, and coordinated advocacy.
Woodside has already announced plans to develop phased hydrogen and ammonia production projects in Perth (H2Perth) and northern Tasmania (H2TAS) to supply both Australian and international markets, leveraging capabilities built over decades of reliable and affordable LNG production and supply.
Woodside also announced in October a new collaboration with renewable energy technology company Heliogen, involving the proposed construction of a 5 MW commercial scale demonstration facility in California using Heliogen’s concentrated solar power technology.
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