Xodus allocated land at Oakajee to develop renewable hydrogen project in Western Australia

HOUSTON, TEXAS (Ian Silverman, Energy Analytics Institute, 26.May.2025, Words: 331) — Xodus, a global energy consultancy, has been allocated land in the mid-west region of western Australia to underpin the development of a commercial scale green hydrogen and ammonia development.

Located in the Oakajee Strategic Industrial Area (SIA), this allocation from the government of western Australia paves the way for Xodus and its partners to progress the project, formerly known as Project MercurHy, under the Warradarge energy banner, the company announced on 26 May 2025 in an official statement.

First announced in 2022, the project will be executed in 2 primary phases, initially focusing on domestic hydrogen supply to decarbonize the mining and heavy transport sectors.

There is an ambition to scale the development further into an ammonia export project located at the Oakajee SIA, Xodus said. 

The initial phase is well advanced, with over 16,000 hectares of land secured at Warradarge, power supply agreements with an existing wind farm under negotiation and offtake partners onboard.

The project also benefits from a competitively priced, behind-the-meter renewable power supply, high plant utilization and a high comparative market price.

“We have worked hand in glove with the Warradarge Energy team, as well and industry partners and landowners to ensure we are delivering a development underpinned by a robust and scalable hydrogen supply chain,” Xodus VP – Asia Pacific and Warradarge Energy strategic advisory board member Simon Allison said in the statement.

Australia has an ambition to be a global hydrogen leader, and the market is currently valued at over $225bn, with more green hydrogen projects under development in the country than anywhere else.

Last year the Australian government announced it would pay eligible producers a hydrogen production tax incentive (HPTI) of $2 per kilogram under the Future Made in Australia legislation. The incentive is available to renewable hydrogen producers for up to 10 years, between 1 Jul. 2027 and 30 Jun. 2040.

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By Ian Silverman reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.