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Vic hydrogen pilot gets under way

12th March 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Operations have started at both of the Hydrogen Energy Supply Chain (HESC) pilot projects in Victoria, marking a world first demonstration of an international hydrogen energy supply chain.

The HESC pilot is developing a complete hydrogen supply chain, creating hydrogen gas via the gasification of Latrobe Valley coal, transport to the Port of Hastings for liquefaction, and shipment to Japan.

The commencement of the Australian arm of operations, using Latrobe Valley coal to produce hydrogen, is a world first and a great leap forward for the country’s ambition to be a key player in the emerging global hydrogen economy, HESC said on Friday.

The HESC Pilot is being delivered by a consortium of experienced industry partners from Japan and Australia including Kawasaki Heavy Industries, J-POWER, Iwatani Corporation, Marubeni Corporation, AGL and Sumitomo Corporation, supported by the Victorian, Australian and Japanese governments.

The federal government on Friday said that the project is an important step in developing Australia’s hydrogen industry, which is estimated could generate more than 8 000 jobs, many in regional Australia, and over A$11-billion a year in gross domestic product by 2050.

Minister for Energy and Emissions Reduction Angus Taylor said the start of operations for the HESC project was a milestone for Australia’s hydrogen industry.

“Our major international trading partners like Japan are very excited about Australia’s hydrogen prospects.

“This project is a great example of how regional Australia can play a key role in developing Australia’s hydrogen future on the world stage, with investment and job opportunities to flow through to communities. This is even more important as we strengthen our economy post-Covid 19.

“This HESC project milestone demonstrates the value of Australia’s technology-led approach to reducing emissions and the leading role hydrogen could play in our future. Real projects like this show our approach is working.”

Minister for Resources, Water and Northern Australia Keith Pitt said the HESC pilot project could help secure a long-term future for Latrobe Valley coal reserves.

“The HESC pilot aims to use brown coal with carbon capture and storage technology to produce clean hydrogen, which can then be used to power much of Japan’s energy needs along with Australia and the rest of world,” Pitt said.

“Australia has been working with our international partners to build a global hydrogen industry. Our strong and historic relationship with Japan helped build our iron-ore and liquefied natural gas industries and now we are cooperating with Japan on the HESC project.

“We are also actively working with a number of countries on hydrogen, including Germany, Taiwan, Singapore and Korea.

“A commercial-scale HESC project could produce up to 225 000 t of clean hydrogen per year with carbon capture and storage. It’s a great example of Australian resources supporting new low emissions energy production.”

The federal and Victorian governments have both made A$50-million commitments to the A$500-million HESC project.

Edited by Creamer Media Reporter

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