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Australia poised for hydrogen world-first

21st January 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The Hydrogen Energy Supply Chain (HESC) pilot project, in Victoria, will start hydrogen shipments to Japan shortly, marking the world’s first shipment of liquefied hydrogen.

HESC’s vision is to produce carbon-neutral hydrogen through extraction from a mix of Latrobe Valley coal and biomass, capturing and storing carbon dioxide (CO2) via the CarbonNet project and optimising energy efficiency in the HESC supply chain.

The 225 000 t/y of carbon-neutral liquefied hydrogen (LH2) produced by HESC in a commercial phase will contribute to reducing global CO2 emissions by 1.8-million tonnes per year, equivalent to the emission of about 350 000 petrol-driven cars, while providing valuable infrastructure for other hydrogen projects in the region.

In a commercial phase, the project will create 30 000 full-time jobs across the Gippsland and Mornington Peninsula regions over the life of the project.

Prime Minister Scott Morrison said the HESC project was a world-first that would make Australia a global leader.

“A successful Australian hydrogen industry means lower emissions, greater energy production and more local jobs,” the Prime Minister said. 

“The HESC project is key to both Australia and Japan and our hydrogen industries. In addition to our government’s support for HESC, we have recently established the Australian Clean Hydrogen Trade Program and committed up to A$150-million to the first round that will focus on clean hydrogen supply chains with Japan.

“Last year, our countries affirmed our mutual ambitions and desire to work together to advance the development of low emissions technologies when we agreed the Japan-Australia Partnership on Decarbonisation through Technology. 

“This project demonstrates the benefits of that cooperation. The HESC project puts Australia at the forefront of the global energy transition to lower emissions through clean hydrogen, which is a fuel of the future.”

To coincide with the milestone, the federal government is announcing A$7.5-million to support the next A$184-million pre-commercialisation phase of HESC.

The government is also committing A$20-million for the next stage of the CarbonNet project. This funding is contingent on additional commitments from the Victorian and Japanese governments, and the HESC business partners.

This brings the Australian government’s total commitment to the HESC project to A$57.5-million.

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the arrival of the Suiso Frontier liquefied hydrogen carrier at the HESC, was an important milestone for Australia’s technology-led approach to reducing emissions.

“The HESC project and the arrival of the liquefied hydrogen carrier today cements Australia’s position as a world leader in hydrogen,” Taylor said. 

“Today’s achievement is a testament to Australian governments working with industry and our international partners to achieve a shared vision. 

“We look forward to continuing to work with the HESC partners and Japan through the government’s new commitments to the next phase of both the HESC and CarbonNet projects.

“The HESC project has the potential to become a major source of clean energy which will help Australia and Japan both reach our goals of net-zero emissions by 2050. Not only this, but the HESC project is delivering jobs and economic activity for Victoria, with a clean hydrogen sector potentially able to generate more than A$50-billion in additional gross domestic product by 2050.” 

Minister for Resources and Water Keith Pitt said the HESC project combined a number of technology elements, including a new way to use Latrobe Valley coal.

“The HESC project demonstrates the importance that Australian resources, such as local Latrobe Valley coal, will have in development of new low emissions industries,” Pitt said.

“The development of HESC and CarbonNet will build on Australia’s reputation as a safe, stable and reliable exporter of resources and energy to the world, including throughout the Covid-19 pandemic.

“Australia’s resources and energy exports are estimated to reach A$379-billion in the current financial year and to continue to support Australia’s economic growth and jobs, particularly in regional Australia.” 

The government is investing more than A$1.3-billion to accelerate the development of Australia’s hydrogen industry, including A$464-million to develop clean hydrogen industrial hubs in regional Australia, including a potential hub in the Latrobe valley.

Edited by Creamer Media Reporter

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