Woodside (ASX:WPL) just signed a key hydrogen export MOU. What does this mean for its shares?

Here are the details of Woodside's latest hydrogen push.

| More on:
male worker in hi-vis checking the balance of the hydrogen tanks

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Owners of Woodside Petroleum Limited (ASX: WPL) shares can rejoice knowing their investment is continuing its push into hydrogen energy.

The company has entered a memorandum of understanding that will see it studying the potential of a liquid hydrogen supply chain. That could see Western Australian hydrogen being shipped to Singapore and, potentially, Japan in the future.

It's the second hydrogen-related announcement made by Woodside in as many months. In October, the company announced its plan to build a hydrogen and ammonia production facility in Perth.

Right now, the Woodside share price is $21.69.

Let's take a closer look at the latest hydrogen ambitions from the oil and gas producer.

What could hydrogen exports mean for Woodside shares?

Woodside is collaborating with Keppel Data Centres, City Energy, Osaka Gas Singapore, and City-OG Gas Energy Services to find if an export corridor for the ultra-cold power source can be created from Perth.

The study will be looking to cool hydrogen to below -253˚C, putting it in its liquid state, before potentially shipping to the island nations.

Woodside CEO, Meg O'Neill states, if successful, the agreement will result in the company diversifying its portfolio – that's likely good news for its shares. She said:

It is important for us to work collaboratively with potential customers and end users such as Keppel Data Centres, Osaka Gas Singapore, City Energy, and City-OG Gas Energy Services to collaboratively build out a sustainable hydrogen supply chain from our proposed H2Perth Project.

The H2Perth Project has the potential to be one of the largest facilities of its kind in the world. It could produce up to 1,500 tones of hydrogen for export every day.

Further, the company notes it may help kickstart Perth's hydrogen economy, with local refuelling stations potentially becoming operational in 2023.

The newly announced study is set to continue until the middle of next year. Then, the parties will decide on the next phase of their collaboration.

Among its aims, is lowering the carbon emissions of cities. Doing so is in line with Singapore's Green Plan.

Right now, the Woodside share price is 5.9% lower than it was at the start of 2021. It has also tumbled 3.3% over the last 30 days.

Should you invest $1,000 in Nvidia right now?

Before you buy Nvidia shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Nvidia wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Female oil worker in front of a pumpjack.
Energy Shares

Should you buy Woodside shares in May?

Is this energy giant a good investment right now?

Read more »

Hand holding out coal in front of a coal mine.
Energy Shares

Down 20% this year, are Whitehaven Coal shares a buy, hold or sell according to Macquarie?

Here’s what’s in store for this Australian independent coal producer.

Read more »

Rocket powering up and symbolising a rising share price.
Energy Shares

Guess which ASX uranium stock could rocket 45%

Big returns could be on offer from this stock. Let's see what Bell Potter is saying.

Read more »

A miner stands in front of an excavator at a mine site.
Energy Shares

3 ASX 200 uranium shares soaring 10%-plus today

What has got investors excited today?

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Woodside shares higher on 'game-changer' news

Let's see what the energy giant has announced on Tuesday.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Paladin Energy shares have surged 32% in 2 days. Macquarie says that's the tip of the iceberg

After a tough year, the future is looking brighter for Paladin Energy shares.

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Woodside shares storm higher on 'world-class operational performance'

Woodside has started the year in a positive fashion.

Read more »