Posco's plan to build a hot briquetted iron plant in Port Hedland is advancing, while other South Korean businesses are weighing WA hydrogen investments, according to Alannah MacTiernan.

Posco's plan to build a hot briquetted iron plant in Port Hedland is advancing, while other South Korean businesses are weighing Western Australian hydrogen investments, according to Hydrogen Minister Alannah MacTiernan.

Ms MacTiernan has been touting opportunities for the emerging sector in WA at the 2022 Global H2 Conference in South Korea.

Interest in the industry had accelerated over the past year, Ms MacTiernan told Business News, with Hyundai, Kogas and Samsung among the Korean businesses considering investments.

South Korean businesses were running the rule over projects such as Intercontinental Energy’s Western Green Energy Hub near Esperance, the state government’s Oakajee, and at Yara’s ammonia plant on the Burrup Peninsula.

The Posco development could soon be at the level to potentially qualify for lead agency status, she said, and it was encouraging that the WA plans had been the centrepiece of Posco’s pitch at the expo.

That status would help move the project through regulatory barriers, with a single department to take the lead organising approvals.

Posco signed an agreement with Hancock Group in April to undertake feasibility work on a hot briquetted iron and hydrogen project.

Hot briquetted iron is made by moulding iron which has been processed, with oxygen removed from the ore.

The South Korean steelmaker is also an investor with Hancock in the Roy Hill mine.

Ms MacTiernan said the HBI plant would initially be powered by hydrogen produced through natural gas reformation, and would transition to green hydrogen over seven years. 

The state’s long trade relationship with South Korea made it an attractive investment destination, Ms MacTiernan said, and the state government was keen to instil confidence by showing its support for the industry.

The Korean government had planned that about 2.3 per cent of its power would be generated by clean gas by 2030, either green hydrogen or blue hydrogen with carbon capture and storage, she said.

On the state government’s planned Oakajee green hydrogen development, Ms MacTiernan confirmed progress was continuing.

“I’m determined it will be something other than empty paddocks,” Ms MacTiernan said.

“We have been making strides over the last few years.”

In 2020, the government opened an expression of interest process for a green hydrogen development at Oakajee, near Geraldton.

More than 60 parties had been interested in involvement in a project, including potential developers, financiers, and equipment suppliers.

The next move would be allocating land for a development.

Last month, the state government announced $10 million for a hydrogen refuelling station at Woodside Energy’s proposed H2Perth project.

That would be used to fuel vehicles operated by BGC and Centurion.

H2Perth is intended to be a $1billion-plus development in Kwinana which would export hydrogen, first from natural gas and then using electrolysers powered by the grid.