Woodside Energy reached a water deal with the city of Ardmore, Oklahoma in support of its green hydrogen project, H2OK.
Under the terms of the deal, which are subject to Woodside taking a final investment decision on the project, Ardmore would construct a transmission line to Woodside’s delivery location by January 1, 2026.
Woodside announced the water deal in its earnings release last week.
The deal is for 1.6 million gallons per day of recycled water, purchased by Woodside at rates that reflect the operational and routine maintenance costs of Ardmore to provide such services. Woodside will also pay the costs of amortizing the construction of the transmission line over a ten year period, according to the agreement.
H2OK is a liquid hydrogen production facility proposed for the Westport Industrial Park in Ardmore.
Phase 1 involves the construction of a 290 MW facility, producing up to 60 tonnes per day of liquid hydrogen through electrolysis, targeting the heavy transport sector. The location offers the capacity for expansion up to 550 MW and 180 tpd.
The project was first announced in 2021. FEED was completed during 2022.
Air Liquide has been awarded the liquefaction contract for the project, while Nel was selected to provide electrolyzers.
Woodside originally aimed to reach FID in 2023, but it pushed back the date because of the lack of clarity concerning US federal tax incentives.
In its earnings report last week, the company noted it was still studying the 45V guidance release by the IRS in December.
A Woodside spokesperson did not respond to requests for comment.
