The Hydrogen Energy Supply Chain (HESC) Pilot Project was successfully completed in February 2022 with the arrival of the Suiso Frontier in Kobe, Japan with a load of liquefied hydrogen extracted from Latrobe Valley coal. This achievement proved the HESC Project’s technical viability and the basis for Project Partners to progress to creating a Liquefied Hydrogen Supply Chain Commercial Demonstration Project between Victoria and Japan.
On March 6th, after a review of several potential projects in Australia and around the world, Japan Suiso Energy (JSE) confirmed it had chosen to allocate the Japanese Government’s Green Innovation Fund (GIF) grant of ¥210 billion Japanese Yen (approximately AU$2.35 billion) to the commercial demonstration phase of Victoria’s HESC Project. The grant was originally allocated to Japan Suiso Energy, Iwatani Corporation and ENEOS in August 2021.
The commercial demonstration project will be delivered by two consortia.
First will be J-POWER and Sumitomo Corporation, who will form a joint-venture to produce clean hydrogen via extraction from Latrobe Valley coal with carbon capture, utilisation and storage (CCUS) in the Bass Strait. Read their statement here
The other is Japan Suiso Energy (JSE), comprised of Kawasaki Heavy Industries and Iwatani Corporation, who will purchase clean hydrogen from the J-POWER/Sumitomo Corporation project and will be responsible for liquefaction at the Port of Hastings and trans-oceanic shipment from Victoria to Japan. Read their statement here.
At a potential future scale of 225,000 tonnes per year, the HESC Project has the potential to reduce global CO2 emissions by 1.8 million tonnes/year, equivalent to taking approximately 350,000 petrol engine cars off the road and create about 1,000 jobs per year in Victoria
For more information on hydrogen liquefaction and transportation, please visit https://www.japansuisoenergy.com/en/.
All news and updates will continue to be published on this website and enquiries can be sent to [email protected].
Carbon Reduction and Sovereign Capability
At full scale, this project will save some 1.8 milliion tonnes per annum (tpa) of CO2 going into the atmosphere, equivalent to the emissions of some 350,000 vehicles. The project will enable Victoria to establish local manufacturing for clean critical products, such as methanol, aviation fuel, and fertiliser, whilst providing local skilled jobs and reducing reliance on imports.
An Advanced Hydrogen Project
The project will produce clean hydrogen extracted from Latrobe Valley coal supported by carbon capture, and storage, with a portion used in Victoria and the balance liquefied at the Port of Hastings and then exported to Kawasaki City in Japan. The initial production of stage 1 by 2030 will be 40,000 tonnes per annum (tpa) by JPOWER Sumitomo Corporation Joint Venture, with 10,000 tpa for domestic use, whilst Japan Suiso Energy export the remainder to Japan.
Jobs and Investment
Billions of dollars will be invested into Victoria and in addition, with the ongoing export of clean hydrogen, enable Victoria to generate additional revenue streams. The full commercial project will create approximately 2,000 jobs during construction and about 1,000 jobs during operations.
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