Gas is available in WA to support new downstream gas processing industries including the production of urea, methanol, and ammonia, according to an ACIL Allen report commissioned by the State Government.

Releasing the Gas and Downstream Industries Opportunities Study, State Development, Jobs and Trade Minister Roger Cook said it confirmed that gas would be an important part of the WA economy well into the future with WA one of the world's largest producers of LNG.

WA accounted for 12 percent of global LNG exports and 57 per cent of Australia’s LNG exports in 2020.

"We are in a prime position to capitalise further on our local gas industry, and create more jobs for Western Australians while enabling the transition to renewable energy,” Mr Cook said.

The State Government has committed around $90 million to develop a job-creating renewable hydrogen industry and is on target to meet the 2022 goals set out in the Western Australian Renewable Hydrogen Strategy.

WA recently joined the Future Fuels Cooperative Research Centre (CRC).

The Future Fuels CRC is an industry-focused research, development, and demonstration partnership supporting the decarbonisation of Australia's energy networks using low carbon fuels, including hydrogen and biomethane.

The State Government and Future Fuels CRC are working to find safe and reliable solutions to repurpose existing infrastructure and develop new infrastructure
to transport future fuel.

Hydrogen Industry Minister Alannah MacTiernan said joining the Future Fuels Cooperative Research Centre reflected the Government’s commitment to making
sure WA continued on its path to becoming an industry leader in hydrogen and future energy industries.

Throughout 2021, projects in WA showed how industry worked to take advantage of the growing future energy industries.

Yara Pilbara was granted a $42.5 million grant to build one of the world’s first industrial-scale renewable hydrogen production operations as a precursor to
the production of ammonia.

Yara Pilbara general manager Laurent Trost said the first move toward renewable hydrogen would clear the way to decarbonizing ammonia production.

“Renewable ammonia can serve as a renewable feedstock for a variety of industrial uses, and even more importantly, renewable ammonia is one of the
world’s most promising fuels for green power generation and shipping,” Mr Trost said.

Earlier this month, Stike Energy’s Project Haber, a 1.4mtpa ammonia to urea production facility, completed Pre-FEED studies.

The study delivered a 6 per cent reduction on the expected capital cost compared to the original feasibility report completed in January 2021.

Strike Energy chief executive officer and managing director Stuart Nicholls said the project would allow Strike to work toward its goal of manufacturing a
globally unique and modern fertilizer.

“Through the application of this technology, Strike expects to be able to pass on substantial carbon savings to Australia’s farmers whilst also delivering shelter
from global gas shortages and international shipping costs,” Mr Nicholls said.

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