ARENA to fund feasibility study for the Parmelia Green Hydrogen Project

Image credit: APA Group

The Australian Renewable Energy Agency (ARENA) has awarded $1.3 million to APA Group and Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) for the Parmelia Green Hydrogen Project – Feasibility Study.

The feasibility study will advance research into establishing a large-scale renewable hydrogen production facility, utilising purpose-built renewable generation south of Kwinana, Western Australia.

The hydrogen would be transferred to WesCEF’s ammonia production facilities in the Kwinana Industrial Area south of Perth via a 43-kilometre section of APA’s existing Parmelia Gas Pipeline.

WesCEF currently produces ammonia from natural gas, and the renewable hydrogen produced by this initiative can potentially lower the facility’s overall emissions.


The initiative follows APA’s work investigating the technical feasibility of transporting hydrogen gas via its Parmelia Gas Pipeline, which discovered that operating the southern 43-kilometre stretch of the pipeline with 100% hydrogen is technically feasible.

The feasibility study aims to enhance Australia’s understanding of large-scale renewable hydrogen projects, including the technical requirements and economics of pipeline transport.

ARENA CEO Darren Miller said the study represents a significant advancement in the development of renewable hydrogen in Western Australia.

“The decarbonisation of the industrial sector is critical to progressing Australia’s 2030 and 2050 net zero targets. Renewable hydrogen will be vital to cutting emissions in heavy industries like ammonia production and will be hugely important in industrial centres like Kwinana,” Miller stated.

“This feasibility study will tell us more about what it takes to develop a renewable hydrogen industry in Western Australia and ARENA will play an active role in sharing those lessons with the market.”

APA CEO and Managing Director Adam Watson said, “This funding contribution from ARENA will support the next stage of this exciting project, which will play an important role in supporting the decarbonisation ambitions of industry.”