Background

Perth is the Capital City of Australia’s largest state, Western Australia (WA). Our state’s land mass covers 2.5 million square kilometers – that’s above the size of Western Europe or four time s the size of Texas.

WA is home to 2.88 million people and 80% (or 2.3 million) of Western Australian residents live in the Perth metropolitan area.

The City of Perth is the local government authority responsible for the commercial, business, recreational, and cultural heart of the state and the Greater Perth region.

Perth is home to the largest concentration of national and global resources and energy companies in Australia. These companies, including over 30% of Australian Stock Exchange (ASX) listed firms are at the forefront of driving energy transition across the Indo-Pacific region.

Western Australia has a target to reduce net greenhouse gas emissions to zero or below by 2050.

Energy Transition Activity

Perth and Western Australia are leading in many aspects of energy transition including:

LNG production

Western Australia is one of the world’s top exporters of LNG, a key energy transition source alongside the USA and Qatar. At 50 M tonnes per year, Western Australia has a history of reliably shipping LNG to international customers from ports in the Pacific Ocean and Indian Ocean.

Critical Minerals

Western Australia has a wealth of critical minerals, the essential building blocks for clean energy technologies, electric vehicles (EVs), and battery storage. 69 of 103 elements can be found in WA.

The state ranks globally 1st for Lithium, 4th for cobalt, and rare earths, 6th for nickel and 9th for manganese supply.

WA is the largest lithium supplier in the world, accounting for 47% of global supply. The Lithium Hydroxide Plant by Tianqi Lithium Energy Australia, located south of Perth, was the first lithium refinery in Australia and has been operating for over 30 years.

The Greenbushes Lithium Mine expansion by Talison Lithium -is the world’s highest-grade hard rock deposit of lithium spodumene.

This abundance positions Western Australia as a key player in the critical mineral supply chain, aiming to be a world-leading value-add sector by 2025.

Wind

Western Australia has four operational wind farms with over 100 MW of installed capacity.

An area of 7,600 square kilometers has been identified off the Western Australian coast for wind farms. The potential power generation is estimated at 20 GW.  This location was chosen for its proximity to high electrical demand, a skilled energy and manufacturing workforce, strong consistent winds, and a pipeline of industry projects in the area.

Solar

About 38% of WA homes have rooftop solar, supplying 15% of capacity.  This is growing at about 1 MW a day.

Between solar and windfarms WA has 1.2 GW of installed power.

Grid Connected Batteries

This high penetration of domestic residential solar is driving demand for grid firming battery storage projects with significant projects underway.

$2.3B AUD has been committed to grid connected battery storage by the State Government in support of a wider $3B AUD investment in energy transition initiatives.

Kwinana big battery is WA’s first transmission connected battery energy storage system with the first battery commissioned with 100MW / 200 megawatt-hour capacity.  The system went online mid-2023. The second big battery at this site will be four times bigger, providing 200MW / 800 megawatt-hour of energy storage and has the capacity to power between 200,000 to 400,000 homes for up to two hours.

The second grid connected battery at Collie is under construction and will be one of the biggest Battery Energy Storage Systems in the world.  Initially this system will provide 200MW of capacity with 800 megawatt-hours. Further State funds have been allocated to an even bigger battery in this location to provide 500MW for up to four hours.

Carbon Capture Utilisation and Storage

The State government has announced a program of incentives and investments in the CCUS industry to leverage the State’s natural potential and geographic advantages in this area.

Hydrogen

Western Australia is a leader in the production of renewable hydrogen.

Substantial solar and wind opportunities, combined with a highly skilled workforce and an abundance of critical minerals for electrolyser production position WA as a strong global supplier of renewable hydrogen.

This commitment to Hydrogen is exemplified by the following large-scale projects within Western Australia’s regional areas including:

  • The ground-breaking Western Green Energy Hub project, one of the world’s largest green hydrogen hubs. This project will generate a staggering 3.5 million tonnes of zero-carbon green hydrogen annually when operational.
  • The Australian Renewable Energy Hub will be rated to produce 1.6 million tonnes pa of green H2 using on site wind and solar when operational.
  • The HyEnergy project will use wind and solar to produce 600,000 tonnes of green H2 per annum when operational.

 

Hydrogen projects within the Perth metropolitan area include:

  • H2Perth by Woodside Energy Ltd, a proposed large-scale project aiming to achieve hydrogen production of up to 1,500 metric tons per day, with the potential to scale up to 3 gigawatts based on demand.
  • H2Kwinana by BP Australia, is an integrated energy hub producing and distributing hydrogen, targeting potential growth of 429 metric tonnes of green hydrogen daily.
  • Hazer Group, a leading clean technology developer announced the start up of its Commercial Demonstration Plant and first production of hydrogen and graphite in early 2024 utilising its world-first pyrolysis technology.
  • ATCO has also developed several hydrogen projects close to Perth including production, blending and refueling facilities and a Clean Energy Innovation Hub

 

The Western Australian Renewable Hydrogen Strategy sets out the State Government’s strategic areas of focus for the development of the industry. The WA Government has committed almost $200 million to grow and support the renewable hydrogen industry, an additional $22.5 million has been committed to streamline approval processes for proponents and investors in the renewable energy sector.

Stability

WA is the only Australian State to hold a AAA credit rating from both major ratings agencies, and one of a very small number of jurisdictions globally with such a rating.

The Fraser Institute Annual Survey of Mining Companies has ranked Western Australia as one of the most attractive jurisdictions in the world for mining investment.  WA was ranked first in 2022, and second in 2023. This supports Australia’s reputation for low sovereign risk and following the rule of law.

The State’s strategic location, established infrastructure, and expertise in resource and energy management further solidify its role in servicing the entire critical mineral supply chain. Partnering with international investors leverages these natural resources, ensuring Perth Western Australia remains a global hub for critical mineral production and export to meet energy transition demand.

Market Access

Two thirds of the world’s population live within neighbouring time zones of Perth.  This places Perth as an ideal trading partner into Asia.

46% of Australia’s export earnings are shipped from Western Australia across the Pacific Ocean, and the Indian Ocean.

Leadership

The City of Perth is a Founding member of WECP and is the only Australian City in the WECP network. In 2023 Perth successfully hosted the WECP AGM and conference and in 2024 led an industry delegation to CERAWeek in Houston aligned to the activities of the WECP Working Group Meeting.

Perth boasts a highly skilled workforce with a significant concentration in the resources and energy knowledge sectors. Over 34% of Perth’s workforce is employed in either Mining or Professional, Scientific and Technical Services. The city is also a hub for universities and technical colleges, ensuring a steady stream of qualified professionals to meet the growing demands of the energy and resources sector.

Livable

Consistently ranked within the top 10% of the Global Livability rankings by the Economist Intelligence Unit, Perth is a popular lifestyle destination. The good weather, excellent family facilities and safety has made it an attractive destination for skilled workers in the energy industry.

Perth’s location and strong government health policy meant Perth was largely unaffected by COVID.  Sports, cultural events, pedestrian activity, employment, retail spending and wages are all above pre-pandemic levels in the City of Perth.

The $1.7 billion City Deal agreement is transforming the face of our cosmopolitan city.  Under this innovative and transformative 10-year partnership with the Australian Federal Government, and State Government, a range of city-shaping projects are underway.  Education, transport, sporting facilities and cultural facilities are all being upgraded to revitalize the way the City of Perth will work, live and invest.

Major Events and Conferences in Perth

Each year Perth hosts the largest energy conference and exhibition in the southern hemisphere – AOG Energy. This premier event which has run for 40 years, brings together over 7,000 industry leaders from 50 countries.  The event brings knowledge specialists, industry leaders, facilitates investment and showcases technical innovation. Visitors to AOG Energy can explore products and solutions spanning from New Energy, Drilling and Completions, Subsea and Marine, Automation and Digital Technology, Asset Integrity and Health and Safety.

Links

City of Perth actively takes a leadership role within the State and the metropolitan Perth region.  Recent related Strategy examples include:

City Sustainability Strategy and Economic Development Strategy

Reports and important documents | City of Perth

City of Perth

Sustainability Hub | City of Perth

Perth City Deal

Future Perth

WA Investment

Companies

Meet Perth energy companies

The World Energy Cities Partnership (WECP) connects leading energy cities on all continents that are committed to fostering the transition to a more sustainable energy future.

Celebrated as the City of Light, Perth is the energetic capital city of Western Australia, a vast state that is blessed with an abundance of mineral and energy resources that are in global demand. From hydrogen, rare earths, lithium, nickel, cobalt, graphite, ammonia, vanadium and more, our state has all of the elements found at the epicentre of the world’s energy transition journey.

City of Perth Lord Mayor, Basil Zempilas

Education

Academic partnerships

The World Energy Cities Partnership (WECP) connects leading energy cities on all continents that are committed to fostering the transition to a more sustainable energy future.

Contact

Get in touch with the City of Perth