Tiwi Islands Solar and Hydrogen Project Canceled Due to Land and Of-take Issues

A significant solar farm and green hydrogen initiative planned for the Tiwi Islands has been officially abandoned due to difficulties in securing land agreements and a decline in interest from Singapore.

Provaris Energy, listed on the ASX, had envisioned a 2.4 gigawatt (GW) solar farm alongside a Tiwi Hydrogen Project capable of producing 90,000 tonnes of hydrogen annually, aimed at exporting to Asian markets. However, the company has withdrawn the project from the federal environmental approval process, as confirmed in a recent announcement to shareholders.

Challenges Faced by Provaris Energy

Provaris CEO Martin Carolan explained to Renew Economy that work on the project was halted in early 2024, with formal notifications sent to relevant governments and stakeholders in December 2024. He noted, “We encountered several challenges in reaching an agreement on the economic and land use frameworks for the Tiwi Islands, which prolonged the process. Without these agreements, it was tough to determine the project’s financial viability.”

Additionally, Carolan mentioned that while there had been strong engagement from the Singapore government, their commitment appeared to be waning, making it difficult to secure progress on offtake agreements.

Shifts in Singapore’s Energy Strategy

The Singapore government had previously approved a series of gas-fired turbines intended to operate on hydrogen. However, they have since begun exploring pilot projects for ammonia-fired power stations, indicating a shift in their energy strategy.

Initially, in 2021, the project seemed to have the support of local landowners, indigenous community representatives, and the territory government. The proposal, which gained federal major project status in 2022, aimed to establish a substantial 500MW solar farm on 2,862 hectares of land cleared for plantation use, with plans for financial closure by 2023.

This timeline coincided with the ambitious Sun Cable project, which aimed to construct 20GW of solar capacity and 42GWh of battery storage, exporting power to Singapore via a subsea cable. Water for the project was to be sourced from a desalination plant.

Future Directions for Provaris Energy

Provaris, previously known as Global Energy Ventures, had anticipated that the first hydrogen exports would commence in 2026, utilising the company’s proprietary compressed hydrogen technology. In an announcement to shareholders earlier this year, the company highlighted the Tiwi Islands’ proximity to Asian markets, land availability, and initial local support as key reasons for selecting the location.

However, they acknowledged that ongoing challenges, including a lack of tangible stakeholder engagement and insufficient demand timelines from potential Southeast Asian hydrogen buyers, hindered the project’s progress. Despite the setback, Provaris noted that they could apply the technical and commercial insights gained from this venture to projects in Europe, where their focus is now shifting.