Hydrogen hub planned at Australia's Newcastle coal port

Australian prime minister Scott Morrison has announced plans to build a green hydrogen and ammonia hub at the nation's largest thermal coal export facility at the Port of Newcastle in New South Wales (NSW).

The Port of Newcastle and Australian bank Macquarie's Green Investment Group have launched an A$3mn feasibility study into developing a hydrogen hub, which will initially be built around a 40MW electrolyser that will increase to over 1GW in capacity. The study, which is supported by an A$1.5mn grant from the federal government's Australian Renewable Energy Agency, will look at hydrogen use in the coal mining region of the Hunter valley and opportunities for export to global markets.

Macquarie's agriculture platform, which manages more than 4.5mn hectares of farmland in Australia, will also look at using hydrogen produced at Newcastle to create green ammonia for fertiliser production.

"With our existing access to global energy supply chains, world-class infrastructure, strong industry partnerships, proximity to the existing demand, links to domestic road and rail networks, a local highly skilled workforce and proximity to renewable energy zones, Port of Newcastle is well placed to develop a hydrogen hub and export hydrogen as a tradeable energy commodity," Port of Newcastle chief executive Craig Carmondy said.

Newcastle exported 131.86mn t of coal during January-October, down from 132.43mn t in the same period last year and 137.14mn t during January-October 2019 prior to the Covid-19 pandemic, according to Port of Newcastle trade data. Coal through Newcastle had a trade value of A$37.18bn during January-October and made up 92.6pc of the value of all goods exported through the port.

The [Australian government does not plan to close coal mining] (https://direct.argusmedia.com/newsandanalysis/article/2262986) or mandate cuts to exports, but it is looking at alternate industries that could support jobs in coal mining and gas-producing regions such as Newcastle and Gladstone in Queensland. Newcastle will be up against competition from coal ports in Queensland, with Dalrymple Bay Coal Export Terminal and Gladstone each moving forward with hydrogen export plans.

The NSW state government has already committed to an A$3bn investment fund to use renewable energy to produce green hydrogen, which is made using renewable energy with no emissions.

Japanese firm Idemitsu has agreed to work with the Port of Newcastle and Macquarie to look at the feasibility of bunkering and exporting green hydrogen and ammonia to Japan from Newcastle. Australian pipeline firm Jemena will provide energy infrastructure expertise.

"Projects like these help lay the foundations for a renewable gas network that takes advantage of Australia's abundant renewable resources," Jemena managing director Frank Tudor said.

By Jo Clarke