Australian energy company Woodside has announced that it expects to commence hydrogen production at its H2Perth refuelling project in Rockingham, Western Australia, during the second half of 2026. The update was included in the company's second-quarter financial results, which reported revenues of $4.18 billion. According to Woodside, key milestones have already been achieved, including successful leak testing and cold commissioning of the hydrogen refuelling facility, paving the way for final commissioning and operational start-up.
The H2Perth refuelling project is equipped with a 2.6MW electrolyser capable of producing up to 235 kilograms of renewable hydrogen per day. The hydrogen will be supplied directly to an on-site refuelling station, supporting the growing demand for hydrogen-powered transport in Western Australia. Looking ahead, Woodside intends to expand the facility's output to approximately 1,000 kilograms per day, a level that would utilize most of the electrolyser's available production capacity. The project will rely on grid electricity backed by renewable energy certificates to ensure lower-carbon hydrogen production.
Commissioning activities remain underway, with the company targeting start-up during the third quarter of 2026. Hydrogen production is expected to begin shortly thereafter, marking an important milestone in Woodside's broader clean energy strategy.
Initially, the refuelling facility was conceived as a supporting component of the much larger H2Perth hydrogen export project. That commercial-scale development remains in the technical design phase and is expected to produce up to 30,000 tonnes of liquid hydrogen annually once operational. Woodside has already secured a conditional offtake agreement with Singapore-based Keppel for undisclosed hydrogen volumes, intended to supply data centres beginning as early as 2030.
Despite progress in Australia, Woodside has recently adjusted its global hydrogen strategy. The company cancelled its proposed 60-tonne-per-day green hydrogen project in Oklahoma, United States, citing escalating project costs and weaker-than-anticipated market demand for green hydrogen. Additionally, the company has experienced delays in launching blue hydrogen supply for its newly acquired Beaumont New Ammonia facility in Texas, where lower-than-expected customer demand for low-carbon ammonia has slowed project development.
Nevertheless, Woodside remains committed to its low-carbon portfolio. In its quarterly update, the company reaffirmed plans to commence blue ammonia production in 2027, contingent upon industrial gas supplier Linde completing required facilities and ExxonMobil successfully commissioning its carbon capture and storage infrastructure. The company's continued investments demonstrate a balanced approach toward developing both hydrogen mobility infrastructure and large-scale hydrogen and ammonia production to support future decarbonization initiatives.
Impact on Product and Chemical Commodity Prices
Woodside's progress at the H2Perth hydrogen refuelling project strengthens confidence in Australia's green hydrogen sector and supports future demand for electrolysers, renewable electricity, hydrogen storage systems, and refuelling infrastructure. While the project's initial production capacity is modest, it signals gradual expansion of the hydrogen value chain and reinforces long-term investment in clean fuels. For chemical commodities tracked by ChemAnalyst, the immediate price impact is expected to remain limited, as production volumes are relatively small. However, sustained growth in green hydrogen and the planned blue ammonia project could gradually increase demand for ammonia, industrial gases, hydrogen, and related engineering materials, supporting prices over the medium to long term.
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