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.
Image source: Getty Images
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.
