Woodside is engaging with the US federal government in an effort to make 45V tax credit rules for green hydrogen more accessible.
The Australian energy company’s green hydrogen project in Oklahoma, known as H2OK, is fully permitted and technically ready for a final investment decision, amounting to Woodside’s most advanced project currently in its development pipeline.
“H2OK is the most advanced project, and we’re technically ready to take an investment decision, but because we were unable to secure sufficient customer offtake, we paused that decision,” CEO Meg O’Neill said in a presentation this week.
H2OK is a liquid hydrogen production facility proposed for the Westport Industrial Park in Ardmore, Oklahoma. 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 reason we weren’t able to secure offtake was because of some complexities around how the IRA is being implemented and we’re engaged in conversations with the US government on levers they can pull to make those tax credits more accessible, which will bring prices down, which will bring customers to the table,” said O’Neill.
Woodside has already made financial commitments for critical path activities and electrolyzers are being manufactured for the project, she added.
In early 2024, Woodside reached a water deal with the city of Ardmore, Oklahoma. 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.
