Canadian utility ATCO has likened the development of a hydrogen industry in WA to the uptake of rooftop solar panels, predicting an inevitable fall in costs would ultimately make it competitive.

After Regional Development Minister Alannah MacTiernan last week called on industry to embrace the potential for a hydrogen production base in WA, ATCO spoke about its plans to be a frontrunner in the space.

Patrick Creaghan, the company’s managing director and chief operating officer in Australia, said hydrogen was “likely to follow a similar cost curve” to photovoltaic production and be “comparable” in price over time.

ATCO, which owns the reticulated gas network that spans from Geraldton to Bunbury, is running a pilot project that aims to unlock different commercial uses for hydrogen.

Chief among them is “blending” hydrogen with natural gas to supplement the network.

To achieve this, ATCO would produce the hydrogen using solar power generated at the site, effectively allowing the gas network to be used as a giant battery to store excess renewable energy. The plan would amount to Australia’s first green hydrogen project, which would create the fuel from renewable power sources rather than fossil fuels.

Hydrogen is produced by splitting water molecules through an energy-intensive process known as electrolysis and can be used to power cars and trucks as well as electricity generators.

Crucially, once burnt hydrogen only emits water.

Mr Creaghan said hydrogen promised to be a catalyst that would allow much greater penetration of renewable energy and the “clean energy innovation hub” was a key step in providing much-needed answers.

“The clean energy innovation hub will test the use of excess energy from solar PV that would normally be wasted if not being consumed and converting that through electrolysis into hydrogen,” Mr Creaghan told WestBusiness.

“This hydrogen can then be stored and called upon when needed.

“We believe capturing excess renewable energy that would otherwise not be utilised, will ultimately provide a cost advantage to hydrogen production.”

Ms MacTiernan, who spoke at a hydrogen conference in Perth on Friday, said the market for hydrogen was set to grow exponentially as countries such as Japan and South Korea looked to reduce their carbon emissions.

She said WA could become a major hydrogen exporter to North Asia.