Federal, State Governments finalise $140m agreement for Pilbara hydrogen hub

In a groundbreaking move aimed at propelling Australia into the forefront of the global clean energy market, the Albanese and Cook governments have solidified a monumental $140 million deal to establish a hydrogen hub in the Pilbara.

Announced jointly by the two governments, the Pilbara Hydrogen Hub is slated to become a pivotal centre for hydrogen production and export, potentially emerging as an international nexus for Australian-manufactured green steel and iron.

The agreement, valued at $140m, is set to kickstart the construction of infrastructure to support hydrogen exports and renewable energy production.

The initiative is anticipated to generate nearly 1000 direct and indirect jobs, encompassing a range of sectors including builders, concreters, electricians, plumbers, fitters, and technicians.

Construction activities, including work on the road and intersection, are scheduled to commence later this year with the hub expected to commence operations by mid-2028.

Notably, a planned pipeline is envisioned to facilitate hydrogen production of about 492,000 tonnes annually, a quantity sufficient to decarbonise existing ammonia production on the Burrup Peninsula.

Funding from both the Commonwealth and Western Australian governments, amounting to $70m each, will be allocated towards the establishment of the hub infrastructure and activities for a Clean Energy Training and Research Institute.

The institute aims to deliver practical, job-focused training in renewable energy and hydrogen for Pilbara residents, including First Nations peoples.

Premier Cook emphasised the hub’s role in bolstering WA’s position as a global clean energy powerhouse, stressing its potential to diversify and fortify the economy for the future.

“When it comes to producing and exporting world-leading products at a global scale, WA leads the way,” he said.

“This project will be WA-produced hydrogen on Asia’s doorstep, helping to strengthen and diversify our economy for the future.”

Federal Minister for Climate Change and Energy Chris Bowen echoed the sentiments, highlighting the hub’s significance in ensuring the Pilbara’s status as a major energy producer and exporter.

Mr Bowen emphasised the region’s transition towards a clean energy industry, which would complement its existing world-class industries.

By 2050, Australia’s burgeoning hydrogen industry is anticipated to contribute an additional $50 billion to GDP and generate more than 16,000 jobs in regional Australia, with a substantial portion of these opportunities expected in Western Australia.

Moreover, the construction of renewable energy infrastructure is projected to create an additional 13,000 jobs, further catalysing economic development in the region.