Top view of waves crashing on a deserted beach


HESC cares about the environment and strives to work with local stakeholders in order mitigate any potential environmental concerns. To speak to a member of our project team, please contact us.

HESC could produce

tonnes of hydrogen per year

Reducing CO2 emissions by
1.8 million

tonnes per year

Equivalent to taking

petrol engine cars off the road


Hydrogen is a clean gas that produces only water when used as fuel for cars, heavy transport, power generation and industry.  Extracting hydrogen from Latrobe Valley coal in a large, central facility means pollution control can be put in place. Carbon dioxide can be removed from the hydrogen gas stream very efficiently.

During the pilot phase, hydrogen was extracted from Latrobe Valley coal at a newly constructed plant located at AGL’s Loy Yang Complex in the Latrobe Valley through a gasification and gas-refining process. During the pilot phase, carbon emissions from the project were very low. Carbon offsets were purchased to mitigate these emissions. In the commercial phase, carbon dioxide would be captured during this process and stored deep under-ground in a process known as carbon capture and storage (CCS).

Australia is taking the lead in developing a Guarantee of Origin for clean hydrogen and the HESC Project is contributing to shaping these standards. The scheme will cover emissions released in the atmosphere as a result of the hydrogen production process. It will avoid misunderstanding and provide consumers with transparency around the environmental impacts of the hydrogen.

HESC’s Carbon Credits

The HESC Project purchased carbon credits for 2,905 tonnes of CO2 emissions equivalent to about 580 cars. This represents the CO2 emissions from the Australian arm of the pilot phase, including direct CO2 emissions from H2 extraction from Latrobe Valley coal through gasification, road transport of gaseous hydrogen, and emissions associated with electricity in the Latrobe Valley and Port of Hastings facilities.

The HESC Project entered into an arrangement with South Pole to invest in Australian Carbon Credit Units (ACCUs). ACCUs are issued by the Clean Energy Regulator. The units HESC purchased contributed to a ‘human induced’ vegetation regeneration initiative in rural Australia: the Boobera Carbon Project in Queensland.  This is fully offset the emissions from the HESC Pilot project.

If the HESC Project proceeds to commercialisation, it will utilise a Carbon Capture & Storage (CCS) solution, with the CO2 storage deep below the seabed in the Gippsland Basin. Rather than entering the atmosphere, CO2 emissions will be safely stored in depleted oil and gas reservoirs 1.5 kilometres beneath Bass Strait, similar to the way oil and gas has been trapped naturally for millions of years.

In addition, for each year it operates at commercial scale, the HESC Project could produce 225,000 tonnes of hydrogen. Using CSIRO data, we estimate this could reduce global CO2 emissions by 1.8 million tonnes per year when compared to current hydrogen production processes, equivalent to the emissions of 350,000 petrol engine cars.


When it comes to local environmental concerns these are as important as tackling climate change. We continue to take steps to identify and mitigate any local environmental issues by listening to local concerns and the voices of experts in Australia and internationally.

In the Latrobe Valley and Hastings, local environmental, safety and, health implications of this pilot project have been considered and mitigation measures are in place. Our FAQ page contains information on why negative environmental impacts are not expected.  The HESC Project is being operated in line with the regulations and approvals of Australian Government, Environmental Protection Authority (FDA) and the Port of Hastings Development Authority (PoHDA), ensuring environmental safety.

For a commercial project, the regulatory approvals process provides an integrated and transparent assessment of the proposed project and its impacts. Information is available to the public throughout the process with multiple opportunities for community consultation and formal input.

The HESC Project has potential to be the cornerstone of Australia’s hydrogen future and a key contributor to global greenhouse gas emission reductions.  For each year it operates at commercial scale, the HESC Project could produce 225,000 tonnes of hydrogen. Using CSIRO data, we estimate this could reduce global CO2 emissions by 1.8 million tonnes per year, equivalent to taking 350,000 petrol engine cars off the road.