Energy behemoth Woodside (ASX:WPL) has secured land for its H2TAS hydrogen plant in the Bell Bay area of northern Tasmania.

H2TAS — which would capitalise of Tasmania’s renewable energy generation — will initially have the capacity of up to 300 megawatts (MW) before a phased progression kicks off to support up to 1.7 gigawatts (GW) of electrolysis.

The company is targeting 200,000 tpa of ammonia, matched to forecast customer demand and will use a combination of hydropower and wind power to a create 100pc renewable ammonia product for export as well as for domestic use.

A final investment decision is earmarked for 2023, with construction and commissioning expected to take about 24 months.

In May, Woodside announced a project consortium under a Heads of Agreement with Japanese companies Marubeni Corporation and IHI Corporation. Initial feasibility studies have also further highlighted the project’s technical and commercial ability to export ammonia to Japan from the Bell Bay area.

Aligns with strategy to develop new, customer-led energy projects

Woodside CEO Meg O’Neill said H2TAS aligned with the company’s strategy to develop new energy projects that were customer-led and scalable to market demand, adding lower-carbon products and services to its international portfolio of world-class energy assets.

“H2TAS is already garnering interest from existing and prospective Woodside customers in Asia and Europe. “Combined with our landmark H2Perth project announced last month, H2TAS will help to position Australia as a global leader in this emerging industry.

“Importantly, this project would also create local construction and operational jobs and new opportunities for Tasmanian businesses,” she said.