Australia's Northern Territory has struck an agreement with French energy giant Total Eren to develop a 1GW green hydrogen project in Darwin that will be powered by 2GW of solar photovoltaics.
The parties have signed a memorandum of understanding for the H2 Hub key development project in the Northern Territory capital.
Under current plans, the H2 Hub project will be powered by 2GW of solar photovoltaics spread over 4,000 hectares of land. The exact location of the project has not been disclosed. This would provide the electricity needed to run 1GW of electrolyzers for the production of more than 80,000 tonnes of green hydrogen per year, the type of electrolyzers not being specified.
Australia recently announced its commitment to a lucrative power export deal with its neighbours. The agreement aims to boost clean energy jobs in Australia's Northern Territory, while also opening up new export opportunities for the Indo-Pacific region.
There has been a major shift in attitudes towards renewable and clean energy in Australia recently. In May's election, a Labour government, which has been vocal about preventing climate change, came to power.
At the end of July, the Australian government proposed legislation to lock in Australia's commitment to achieving net-zero emissions by 2050 and strengthen oversight and accountability for climate change progress, a departure from the previous government's approach.
Total Eren said the company plans to "accelerate the development of this project to supply green hydrogen, while accelerating opportunities for renewable energy development to support decarbonization plans for energy-intensive industries in the region."
Total Eren isn't the only energy giant building green hydrogen projects in Australia. In June, BP announced plans to acquire a 40.5% stake in a green hydrogen project in Western Australia and become the operator of the project. Upon completion, the project will provide up to 26GW of solar and wind energy.
Increased green hydrogen capacity is seen as key to the decarbonization of some heavy industries, and thus to a larger energy transition. In June, risk management provider DNV released a report arguing that global hydrogen development is far below the requirements of the Paris Agreement, and that insufficient investment in this technology will miss out on industries in the global economy that are difficult to reduce emissions. Decarbonization opportunities.
