Australia’s Woodside (WPL) snaps three-day losing streak
09:00, 12 November 2021
Australia’s Woodside Petroleum has secured land for a hydrogen plant project in Tasmania, sending its stock into positive territory following a three-day of losing streak.
The energy company plans to use the abundant potential of hydro and wind power in Tasmania to fuel electrolyser for hydrogen production. The hydrogen will then be converted into ammonia for ease of transport.
The plan is still at its early stages, but securing the land made investors cheered, with Woodside’s stock surged to as high as AUD22.36 apiece before ending the day at AUD22.25, 1.1% above Thursday’s close.
Cooperation with Japanese firms
“H2TAS is already garnering interest from existing and prospective Woodside customers in Asia and Europe,” Woodside CEO Meg O’Neill said in a statement.
Woodside has signed an agreement with Marubeni and IHI for exporting ammonia to Japan, with the first phase of the Tasmanian project targeted to produce 200,000 tonnes of ammonia per year starting with 300 megawatts of electrolyser capacity.
The H2TAS is expected to support electrolysis capacity of up 1.7 gigawatts, though final investment decision regarding the project will only be made in 2023.