Victorian coal to hydrogen project kicks off

hydrogen, HESC
The Hydrogen Liquefaction and Loading Terminal

Construction has kicked off on the $500 million Hydrogen Energy Supply Chain pilot project that will see brown coal from Victoria’s Latrobe Valley transformed into hydrogen for export to Japan.

Works have begun on the hydrogen liquefaction and loading terminal at Port Hastings, Victoria – a facility that will convert hydrogen gas into liquefied hydrogen, which will be stored and then loaded onto the world’s first specialised marine carrier for transport to Japan.

Emissions from the project, run by Kawasaki Heavy Industries and Hydrogen Engineering Australia (HEA), will be fully offset, and it will create a new innovative technical foundation for the development of an exciting hydrogen export industry for Australia.

Kawasaki Chairman of the Board Shigeru Murayama said, “Delivering clean hydrogen to the world for the benefit of our environment is a goal we share deeply and we look forward to achieving.

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“The hydrogen economy is already materialising in Japan, and it is wonderful to now be breaking ground here in Australia. We are excited to be translating our joint hydrogen vision into reality.”

Australia’s Minister for Resources and Northern Australia Matt Canavan said Australia is well placed to become a global leader in hydrogen production and this project is a crucial step towards making that happen.

“The Australian and Victorian Governments have committed $50 million each to the $500 million project, which is also supported by the Japanese Government and Japanese industry.

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“The use of hydrogen is part of Japan’s vision of a clean energy future and any emissions from the pilot project will be fully offset, with commercial scale operations required to use carbon capture and storage to ensure a low emission source of hydrogen.”

The construction work includes building and mechanical installation including a liquefaction facility and a storage container to be completed by June 2020, to be followed by commissioning, with the target operating period being from 2020 to 2021.

The project is being delivered by a consortium of Japan and Australia’s top energy and infrastructure related companies, with the full support of the Victoria, Australian and Japanese Governments.