Australia's APA, Wesfarmers Chemicals ink hydrogen MoU

Australian gas infrastructure business APA Group and Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) have signed a memorandum of understanding (MoU) to undertake a pre-feasibility study to assess the viability to produce and transport green hydrogen via APA’s Parmelia gas pipeline, APA said on May 6.

This pre-feasibility study builds on work already undertaken by APA to test the Parmelia gas pipeline for hydrogen compatibility. The early test results indicate that the pipeline will be suitable for 100% hydrogen service without any requirement to reduce the operating pressure of the pipeline, APA said.

The 416-km Parmelia gas pipeline transports gas from Western Australia’s Perth basin gas fields near Dongara, the Carnarvon basin (via the Dampier to Bunbury natural gas pipeline) and APA’s Mondarra gas storage facility. 

Under the MoU, the pre-feasibility will be jointly funded and will assess the viability of green hydrogen production and transportation by Parmelia gas pipeline to WesCEF’s production facilities in the Kwinana industrial area.

“If successful, green hydrogen could facilitate the production of green ammonia and other sustainable chemicals, and take a section of APA’s Parmelia gas pipeline a step closer to becoming a pure renewable hydrogen service,” the company said.

The results from APA’s first phase of testing are proving to be promising after they were validated through comparative testing by a world-renowned independent laboratory.

Phase two testing, which is supported by A$300,000 of grant funding from the Western Australian government, is currently underway and involves testing the pipeline material in a gaseous hydrogen environment and comparing the pipeline material performance against the results from phase one and the international research.

The testing is being carried out at the University of Wollongong, in partnership with the Future Fuels Cooperative Research Centre.