Japan Suiso Energy (JSE) and the J-Power-Sumitomo JV (JPSC-JV) provide the following response to an article by Peter Hannam in The Guardian on April 11, 2023.
The HESC project will bring significant inbound investment into the State of Victoria.
The Japanese Government has committed AU$2.35 billion (JPY220 billion) to financially support this world’s first clean liquefied hydrogen supply chain from Victoria to Japan.
Specifically, the funding will support the development of a hydrogen liquefaction facility in Hastings, port facilities for loading liquefied hydrogen, the building of a hydrogen-powered liquid hydrogen carrier ship and unloading facilities in Kawasaki city, Japan.
In addition, there will be significant investment from project partners in the other project components located in Victoria, including the hydrogen production facility and the CO2 storage project.
This infrastructure and ongoing project operations will create thousands of jobs for Victorians and create a pathway for other hydrogen projects.
Who pays for Carbon Capture and Storage
The JPSC-JV will be responsible for clean hydrogen production and CO2 capture. The CO2 storage will be delivered via one of two options; the CarbonNet project or ExxonMobil’s affiliate GBJV CCS Hub, both located in Bass Strait. The cost of the CO2 capture, transfer and storage will be incorporated in the cost of the clean hydrogen.
The JPSC JV is currently assessing a number of clean hydrogen offtake options in regard to quantity and duration. JSE is an important off-taker but will not be the only customer for JPSC JV hydrogen.
JSE’s long-term vision is to establish a full commercial scale liquefied hydrogen supply chain in the 2030s beyond commercial demonstration scale.
The project will significantly reduce global CO2 emissions and provide thousands of jobs for the Gippsland region as it transitions to a clean energy future.
It is the right project, in the right place at the right time.