McDermott Inks H2Perth Project Pre-FEED Deal From Woodside

McDermott Inks H2Perth Project Pre-FEED Deal From Woodside
McDermott International has been awarded a Pre-FEED contract from Woodside Energy for the proposed H2Perth project.

U.S. giant engineering firm McDermott International has been awarded a pre-front-end engineering design (Pre-FEED) contract from Woodside Energy for the proposed H2Perth project.

Under the contract scope, McDermott will provide pre-FEED services for a proposed export-scale production facility for renewable and lower-carbon hydrogen and ammonia located in the Kwinana/Rockingham area in Western Australia.

According to McDermott, hydrogen will be produced using electrolysis technologies and natural gas reforming with carbon emissions abated or offset.

"This award follows the successful completion of the concept study on H2Perth and decades of experience executing both onshore and offshore projects for Woodside Energy," said Tareq Kawash, Senior Vice President for Onshore at McDermott.

"We are pleased to continue supporting Woodside's energy transition opportunities and are mutually aligned on the importance of driving lower-carbon energy to advance Australia's vision as a global leader in clean, innovative, safe, and competitive hydrogen production," he added.

Work on the project will be executed from McDermott's office in Perth, Australia, and its engineering center of excellence in The Hague, the Netherlands.

The proposed H2Perth project is a large-scale hydrogen and ammonia production facility that would be constructed on approximately 321 acres of vacant industrial land in the Kwinana Strategic Industrial Area and Rockingham Industry Zone.

The project is planned as a phased development. The project would initially target 300 tons per day of hydrogen production, which can be converted into 600,000 tons per annum of ammonia or 110,000 tons per annum of liquid hydrogen

Electrolysis technologies and natural gas reforming would both be used to produce hydrogen, with 100 percent of carbon emissions abated or offset. The initial capacity of the electrolysis component is 250 megawatts while the initial phase of the steam methane reformer will consume 40 terajoules per day of natural gas. Electricity for the electrolyzer would be sourced from the Southwest Interconnected System.

According to available data, the initial phase of the project has an estimated project capital cost of approximately $700 million.

At expected full capacity, the project would be able to target hydrogen production of up to 1,500 tons per day, with the potential for electrolyzer capacity to scale up to 3 gigawatts, depending on customer demand and renewable energy growth.

Subject to necessary commercial and regulatory approvals and a positive final investment decision, construction on the initial phase of the project could commence in 2024.

In December 2021, it was announced that Woodside, Keppel Data Centers, City Energy, Osaka Gas Singapore, and City-OG Gas Energy Services would collaborate to explore the technical and commercial aspects of developing a liquid hydrogen supply chain between Western Australia and Singapore, and potentially Japan. The agreement followed the announcement of the proposed H2Perth hydrogen facility.

To contact the author, email bojan.lepic@rigzone.com


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