Australia’s Woodside is aiming to take the final investment decision in 2023 for a large-scale renewable (green) hydrogen project in Tasmania.

The H2TAS project is a phased development with the potential to support up to 1.7 gigawatts of electrolysis for hydrogen and ammonia production. The initial phase would have capacity of up to 300 megawatts and target production of 200,000 tonnes per annum of ammonia, matched to forecast customer demand.

H2TAS would use a combination of hydropower and wind power to create a 100% renewable ammonia product for export as well as renewable hydrogen for domestic use.

Woodside has a heads of agreement with Japan’s Marubeni and IHI for the project. The trio have completed initial feasibility studies, which found it is technically and commercially feasible to export ammonia to Japan from the Bell Bay area in northern Tasmania.

Construction and commissioning of H2TAS is expected to take approximately 24 months after sanction, suggesting start-up could be as early as 2025.

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Woodside chief executive Meg O’Neill said H2TAS aligned with the company’s strategy to develop new energy projects that were customer-led and scalable to market demand, adding lower-carbon products and services to its international portfolio of world-class energy assets.

“H2TAS is already garnering interest from existing and prospective Woodside customers in Asia and Europe.

“Combined with our landmark H2Perth project announced last month, H2TAS will help to position Australia as a global leader in this emerging industry.

“Importantly, this project would also create local construction and operational jobs and new opportunities for Tasmanian businesses,” she said.

Woodside on Friday said it had secured land in the Bell Bay area for its proposed H2TAS hydrogen plant, “marking another step forward in its plans for large-scale production of renewable hydrogen and ammonia”.

The company in January signed a memorandum of understanding with Tasmania, which outlined the Australian state government’s support for the H2TAS project.