PORT of Newcastle’s Clean Energy Precinct reached a milestone on Monday (14 October) with agreements signed for design works and environmental impact studies.

The two agreements are funded through a $100-million project grant from the federal government, first announced in the 2022-23 federal budget.

The agreements, for Front End Engineering Designs (FEED) and Environmental Impact Statements (EIS), cover berth infrastructure, pipelines to berth, electrical infrastructure, water services, general infrastructure and storage.

Development of the Clean Energy Precinct (CEP) involves renewing a disused 220-hectare industrial site to facilitate the production, storage, transmission, domestic distribution and international export of hydrogen and ammonia.

Port of Newcastle CEO Craig Carmody said this next phase will determine the infrastructure and services critical to the progression of the precinct’s development.

“Once fully developed, the CEP will contribute $4.2 billion and is estimated to generate 5800 new jobs to the Hunter Region by 2040,” Mr Carmody said.

He noted the precinct would also increase renewable-energy generation, storage and investment under the NSW government’s Electricity Infrastructure Roadmap. The project is being delivered in partnership with the state government through a Federation Funding Agreement Schedule.

“I thank the Commonwealth and NSW governments for their support, buoyed by our supporting industry partnerships, which has helped position the port and our entire region as a leader for the future of clean energy production.”

Federal infrastructure and transport minister Catherine King said the precinct would demonstrate how legacy infrastructure can be repurposed to support production and export of renewable energy.

“Through our investment, we are supporting Australia’s transition to net zero while creating jobs and economic opportunities in the Hunter region,” she said.

“The project will help position Australia as a global leader in technologies and products that reduce carbon emissions including hydrogen and green ammonia.”

And state member for Newcastle Tim Crakanthorp said he has been working with the port over the last decade to “support them in their diversification away from coal”.

“With Newcastle’s existing infrastructure and skilled workforce, there is no better place in NSW for this precinct,” he said.

The FEED and EIS studies will be completed by successful tenderers Lumea (electrical), CoNEXA (water) and GHD (general infrastructure), informing future site enablement, site layout, and land platform design, which will be used to prepare environmental planning approvals.

The federal government said Port of Newcastle will now undertake formal community consultation and further engagement with industry.

A rendering of Port of Newcastle’s Clean Energy Precinct stage two. Image: Port of Newcastle