Questions have arisen over proposed land deals on WA's south coast that could set long-term precedents for farmers and the renewable energy industry.
Businessman Andrew Forrest's Fortescue Future Industries (FFI) wants to create green hydrogen in the Esperance region, pending approval from local farmers to put wind turbines and solar panels on their land.
But there is some conjecture over what a fair price for hosting that infrastructure would be.
That is because leasing land to wind turbine operators in the hydrogen industry is a brand new proposition, even though it has been done plenty of times with those generating electricity.
A low offer?
The ABC understands the initial offer from FFI is payment of $8,000-$12,000 per 5MW turbine per year, for at least 30 years, plus an initial sign-up payment.
But sustainable infrastructure expert and adjunct professor at UWA Bill Grace said he believed wind turbine operators in the electricity business typically offered landowners far more than that – $5,000 per megawatt per turbine per year.
"We're probably talking about four or five megawatt turbines, so probably around $20,000 per turbine per year," he said.
"But you could probably say plus or minus 25 per cent on that kind of figure."
One Esperance farmer, who did not wish to be named, said FFI needed to up its offer as the burden on landowners was the same whether the turbine was used for electricity or hydrogen generation.
He also said there was an element of risk on the side of the landowner because the deal would span multiple decades and the industry was untested, which should be reflected in the lease offer.
The ABC also understands farmers are currently being asked to sign exclusivity agreements with FFI, which earns them a $1,500 payment and means they will not accept offers from other companies for three years.
Maia Schweizer, an FFI director, said the company "will work to find the compensation level that encourages landholders to participate while making the project viable".
Esperance is not connected to a major electricity grid and some believe that could also influence market forces.
Landowners could band together
Mr Grace believed farmers and landowners in the region should form a conglomerate.
He said that would help them negotiate a fair deal, particularly given the enormous amount of land he suspected the project would require.
He believed that approach should be led by the state government.
The state's hydrogen industry minister Alannah MacTiernan did not say whether that is something the state would consider.
But she said it was investigating how to make the region more attractive to the industry.
State-owned Horizon Power is hoping to hear this week whether they secured federal funding to launch a study into making the Esperance-Goldfields region a "hydrogen hub".
That could see the state invest in common-user infrastructure, like the hydrogen pipeline on the cards for the Pilbara or the hydrogen refuelling infrastructure proposed in the Midwest.
Mid last year, an international consortium revealed plans to build the Western Green Energy Hub between Esperance and Eucla, which would be the largest green energy hub in the world.
It began testing the quality of wind and solar in that region last week, after being granted exclusive access to do so.
Mr Grace believed the world was looking for places to make green hydrogen and WA's south coast was likely to be an attractive option for many.
"I'm sure the world will need green hydrogen."
Concern over bushfire risk
But local attitudes towards the industry appear to be split.
Beaumont farmer Mark Biven is firmly against the FFI proposal, because of the potential noise, the extra powerlines, and because he thought turbines an "ungainly sight".
Scott Mackie is an aerial spraying contractor, which he does from a plane only 10-12 feet off the ground.
He said the turbines would pose serious hazards and may even hamper the region's ability to water-bomb bushfires.
The Australasian Fire and Emergency Service Authorities Council said wind turbines can limit aerial firefighting because they are hard to see and may interfere with communications networks.
But it also said wind turbines could possibly reduce the risk of bushfires caused by lightning, if strikes hit turbines rather than the ground.
But the Esperance Chamber of Commerce and Industry and the Esperance Port are all for it and the Esperance Tjaltjraak Native Title Aboriginal Corporation believes it could provide opportunities.
Adrian Perks, who farms about 65 kilometres east of Esperance, has formally registered his interest in the project, saying he is particularly keen on the access it could give the region to fertiliser.
But he said the idea of paving the way for such a new industry was daunting.
"If it turns out to be a great thing then yeah, you'd be looked at as one of the people that set it all up," he said.
"Before we get too excited about anything there is a lot of water to go under the bridge."
