Woodside will take FID on its 90t/d H2OK project in Ardmore, Oklahoma this year, the Australian oil and gas company reaffirmed in its annual results.

Woodside has completed Feed on the project and awarded contracts for its electrolyser to Norway’s Nel and liquefaction systems to France’s Air Liquide. The firm plans to supply liquid hydrogen from H2OK to the heavy-duty transport sector, with the project sited close to national highways and supply chain infrastructure for major transport companies.

90t/d – H2OK planned production capacity

However, timelines for Woodside’s projects at home and in New Zealand remain vague. While the firm plans to invest $5bn by 2030 in its new energy portfolio—which includes hydrogen, ammonia and CCUS—it has yet to complete Feed or indicate a potential FID date on its two Australian developments, H2Perth and H2TAS.

Similarly, while Woodside was announced as the preferred partner to progress New Zealand’s Southern Green Hydrogen project in November, Feed will begin only once commercial agreements between project partner Meridian and potential offtaker Mitsui are finalised.

IRA prompts rethink

Australia plans to drive down the cost of green hydrogen at point of production to A$2/kg ($1.12/kg), as part of its ambition to become a major exporter. But while the country has invested in hydrogen on a hub-by-hub and project-by-project basis, it has yet to unveil subsidies for production on a similar scale to the US’ $3/kg tax credit.

Australia’s federal minister for climate change and energy, Chris Bowen, recently announced that the country would review its national hydrogen strategy, originally published in 2019. “It needs to be revised and refreshed, particularly in light of international developments, including the Inflation Reduction Act,” he said at a press conference on Friday.

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Author: Polly Martin