AN AUSTRALIAN joint venture between Japanese organisations J-Power and Sumitomo Corporation (JPSC JV) has been selected as the preferred hydrogen provider to Japan Suiso Energy (JSE).
The hydrogen gas will be produced in Gippsland and JSE will liquify the hydrogen for export to Japan.
The joint venture will produce the hydrogen, extracted from Latrobe Valley coal with carbon dioxide capture, utilisation and storage.
According to a statement from Hydrogen Energy Supply Chain, J-Power produced 99.999% pure hydrogen gas, extracted from Latrobe Valley coal, as part of the Hydrogen Energy Supply Chain (HESC) Pilot Project, which achieved a world-first liquid hydrogen supply chain with the delivery of the hydrogen at the Port of Kobe in Japan in February 2022.
The HESC project is now entering commercial demonstration phase with the commitment of ¥220 billion ($2.35 billion) in funding from the Japanese government’s Green Innovation Fund.
A future potential production of 225,000 tonnes per annum, would reduce about 1.8 million tonnes per annum of carbon dioxide from being released into the atmosphere.
Subject to commercial agreements and meeting the required environmental permits and approvals, the project is expected to begin hydrogen production in the late 2020s.
J-Power Latrobe Valley non-executive director Jeremy Stone said, “Building on the success of HESC and J-Power’s 166MW Osaki CoolGen project, we are excited to be one step closer to making commercial scale hydrogen production in Victoria a reality.
“This is a major milestone and a recognition of Gippsland’s unique ability to help reduce global carbon dioxide emissions through the reliable production of large quantities of cost competitive and clean hydrogen.”
Japan Suiso Energy CEO, Dr. Eiichi Harada said, “We are delighted to have selected the JPSC JV as the preferred supplier of clean hydrogen for the Japanese energy market as we continue our transition to a more sustainable clean energy future.
“We have received a commitment of ¥220 billion ($2.35 billion) from the Japanese Government’s Green Innovation Fund to further progress this opportunity. We look forward to working with the JV and the Victorian, Australian and Japanese governments to achieve the significant economic and emission reduction benefits that a commercial scale clean hydrogen project will deliver.”
The JPSC JV will initially produce between 30,000 to 40,000 tonnes per year of gaseous clean hydrogen.
Mr Stone said there is significant domestic interest in a reliable source of locally produced, cost competitive clean hydrogen.
“Now we have countries establishing the definition of clean hydrogen, based on carbon intensity, we are seeing an opening of trade, based on credible and transparent carbon dioxide reduction numbers, at various price points,” he said.
“We are expecting further offtake agreements for hydrogen, that can be used by a wide range of businesses and industrial processes, including the production of ammonia, fertiliser and methanol.”
