Renewable ammonia transportation corridor feasible between Australia and Germany
By on June 03, 2025
Oakajee to Rotterdam
Click to expand. Oakajee Strategic Industrial Area’s globally competitive wind & solar energy potential and abundant land resources can enable RFNBO-compliant ammonia produced in Western Australia to be exported to Europe. Source: Fraunhofer ISE.
Working towards its goal of making Western Australia a globally significant renewable hydrogen development hub, the West Australian state government has launched a series of export feasibility studies. One of these, the Trilateral Hydrogen Hub (TrHyHub) Feasibility Study, was recently completed by the Mid West Ports Authority, the Port of Rotterdam and Germany-based Fraunhofer Institute for Solar Energy Systems.
The study, which focused on the technical design, location and feasibility of ammonia export infrastructure in the Oakajee Strategic Industrial Area (SIA) on WA’s central coast, has shown that renewable ammonia exports to Europe from the state’s Mid West region are feasible. Thanks to competitive wind and solar energy potential, abundant land resources and political stability, the region can produce RFNBO-compliant ammonia for export to Europe via the Port of Rotterdam, with single point mooring offering a cost effective solution at Oakajee port.
The study revealed that the areas surrounding the Oakajee SIA have enough wind and solar energy potential to produce up to 15 million tons per year of renewable ammonia. This is equivalent to 75% of Europe’s expected demand by 2030.
The study finds that the high cost of shipping (given the distance between Western Australia and Germany) is offset by strong renewable energy potential which unlocks lower cost renewable hydrogen and ammonia production. This being said, shipping/transportation costs would only contribute 9% to the overall production and delivery costs. The study also found that ammonia fared better than liquid hydrogen and methanol as the mode of choice for hydrogen transportation.
The WA Government plans to scale the Oakajee SIA as a major renewable hydrogen hub is part of the State’s broader plan to make WA a leading hub globally. The government has in place a $1 billion Strategic Industries Fund which plans to accelerate clean energy and major industrial projects.
The TrHyHub study was first announced in 2022. In the same year, six players including Fortescue, BP, Copenhagen Infrastructure Partners, Green LOHC, Kinara Power and Blue Diamond Australia were allocated land in the Oakajee industrial area for project development. Xodus and project partners have recently secured land for an ammonia production project in the Oakajee SIA first announced in 2022.
Germany and Australia are also collaborating through a €400 million (50:50 contribution) joint commitment to support European renewable ammonia offtakers via the H2Global contracts for difference mechanism.
We want to keep WA’s economy the strongest in the nation, including by diversifying our economy and making more things here. That means supporting job-creating renewable energy projects. This study demonstrates the critical role WA could play as a clean energy exporter if we can work with industry and build on our experience as a globally recognised energy exporter that can deliver major projects. By activating industrial areas and streamlining approvals, we will ensure WA is well-placed to become a world leader in green hydrogen exports.
Jackie Jarvis, Mid West Minister, in the official Western Australia Government press release, 2 May 2025
Mid West Ports plays a vital part in sustaining the economy of the region, and this study highlights its importance to our State leveraging new export opportunities, like renewable energy. I commend Mid West Ports Authority for their role in this study and their work to support the activation of Oakajee SIA. This collaborative project has also bolstered our State’s relationships with key international partners such as Europe’s largest seaport – the Port of Rotterdam – and strengthened our understanding of what is required to make clean energy exports from the Oakajee SIA to Europe a reality.
Stephen Dawson, Ports Minister, in the official Western Australia Government press release, 2 May 2025