How do you scale-up green hydrogen production in a market still in its infancy? As an answer, we helped Stanwell develop a technical and financial plan that would help it commercialise green hydrogen through exporting it to energy-constrained economies.
Green hydrogen is a critical technology to help decarbonize the energy sector. It is costly to produce because markets are still in their infancy which hampers its development. And to offset the costs of technology, green hydrogen needs economies of scale. So, how do you ramp up its production?
This was something that Stanwell, a power producer in Queensland, needed the answer to. Stanwell wanted to diversify its business to include a focus on the green hydrogen market, it also planned to export to markets such as Japan.
From site selection to hydrogen delivered in Japan
Using our knowledge of hydrogen technology, gas handling, water management and local regulations, we developed a concept study for a green hydrogen facility. Working with Stanwell we selected a site near the Gladstone port suitable for scale up of Stanwell’s hydrogen production from an initial 800 MW to 3 GW. We also created a cost model for the landed price of hydrogen in Japan, and a sensitivity analysis that would support decision making.
To make sure there will be a continuous supply of hydrogen to the liquefaction and export facilities, we configured the power supply, technology, plant and storage designs. Liquid hydrogen vessels also needed access to Gladstone port, so we designed jetty and dredging upgrades for the future.
Understanding the renewable energy requirements
Next, we calculated the renewable energy Stanwell needed for electrolysis, assessing potential sites for solar and wind power infrastructure within 150 km of Gladstone. This included forecasting potential costs by analysing the use of wind and solar, along with energy storage solutions. We also assessed the potential impact it would have on the existing power grid and water supply.
Making it possible to progress to the next phase
Our study found the key cost drivers for the project to meet the Japanese market's targeted levelized cost of hydrogen (LCOH) and demonstrated the benefits of increasing scale of production. In addition, Advisian and the Worley Major Projects team advised Stanwell on the overall execution and contracting approach.
Based on this work, Stanwell is now moving to the Feasibility and FEED phases for the project.