PORT of Newcastle’s green hydrogen hub project is set to receive up to $41 million in government funding.
Port of Newcastle said the funding will position the port as the ideal site to establish the hydrogen hub, with connectivity to domestic and export infrastructure, proximate demand and access to renewable energy.
The $163 million project is a joint venture with Macquarie Capital and Macquarie Green Investment Group.
Project partners are reportedly working to define a range of uses for green hydrogen in the Hunter, which build on the region’s industrial heritage.
These uses include mobility, bunkering, energy production and industrial uses at the scale necessary to position the Hunter at the centre of the emerging global green hydrogen opportunity.
Port of Newcastle CEO Craig Carmody said the funding reflects the federal government’s recognition of the port as a key player in the international green hydrogen economy.
“The significance of this funding cannot be understated,” Mr Carmody said.
“By 2025, we hope to have Phase 1 of the hydrogen hub complete, which will benefit a range of local industry and position the Hunter region to be a key player in the emerging hydrogen opportunity.
“This funding also complements the recent $100 million in federal government funding for hydrogen readiness, which will focus on preparing the land and infrastructure, while the Department of Industry, Science, Energy and Resources funding provides the platform for a ready transition to Phase 1 construction.”
Kate Vidgen, Macquarie Green Investment Group global head of industrial transition and clean fuels, said the importance of hydrogen as a decarbonisation pathway is becoming recognised world-wide
“Successful projects will rely on strategic sites with local demand and clear paths for scale over time and today’s announcement underscores Newcastle’s world-class capability in this field,” she said.
The grant was awarded as part of a federal government program designed to support the initial development of clean hydrogen industrial hubs in Australia.
It is complemented by the $100 million investment outlined in the 2022-23 Federal Budget which intends to support the initial works to make Port of Newcastle’s infrastructure “hydrogen ready”.
Prime Minister Scott Morrison said the investment supports the coalition’s goals to ensure affordable and reliable energy and to meet emissions reductions targets.
“Australia will be a world-leader in hydrogen development and exports, and the Hunter region is critical to realising our nation’s potential,” the Prime Minister said.
“The Hunter has been an essential part of Australia’s energy security for decades, and our investment today locks in the Hunter’s clean energy future.
Minister for industry, energy and emissions reduction Angus Taylor said the Hunter region and Port or Newcastle offer significant potential for both hydrogen production and export opportunities.
He said the project is backed by private sector funding and demonstrates the confidence the industry and government have in the region.
“With existing supply chains to key consuming countries, such as Japan, and high future local hydrogen demand for uses such as electricity generation, gas blending and transport, the Hunter is a highly competitive location for a clean hydrogen hub.”
