The aim is to use the available renewable energy to power electrolysers to split water and produce so-called green hydrogen which would then be converted to ammonia for export, part of a push by Australia, a major coal and gas exporter, to help cut carbon emissions.
Woodside is working with Japan's Marubeni Corp and IHI Corp to export 200,000 tonnes a year of green ammonia to Japan from Tasmania's Bell Bay area, starting with 300 megawatts of electrolyser capacity.
They aim to make a final investment decision in 2023 and complete construction in 2025 on the project called H2TAS. Woodside has not disclosed a cost for the project yet.
"H2TAS is already garnering interest from existing and prospective Woodside customers in Asia and Europe," Woodside Chief Executive Meg O'Neill said in a statement.
Fortescue Metals Group and Origin Energy have proposed similar projects at Bell Bay.
Tasmania's Energy Minister Guy Barnett said the state was working closely with the projects to create a single export hub, which could qualify for funding from the Australian government's A$464 million ($338 million) clean hydrogen hubs program. First round bids close on Nov. 22.
"Woodside strongly supports a collaborative approach among proponents and with governments to strengthen Bell Bay as a hub," Woodside spokesperson Christine Forster said in emailed comments, adding that sharing infrastructure would help keep costs down.
Government support would be needed for its H2TAS project, the company said.
($1 = 1.3734 Australian dollars)
(Reporting by Sonali Paul; Editing by Christian Schmollinger)
