HESC-Loy-Yang

Latrobe Valley

Hydrogen Production

Hydrogen gas will be produced at a newly constructed plant located at the AGL Loy Yang Complex in the Latrobe Valley.


Stage 1. Latrobe Valley Coal Gasification

Location: Loy Yang, Latrobe Valley

Hydrogen is being produced from Latrobe Valley coal by gasification. Coal gasification is a well-developed technology and core to current Integrated coal Gasifier Combined Cycle (IGCC) developments used for power generation in Japan, US, EU and China.

Coal gasification works by reacting coal with oxygen under high pressures and temperatures to form synthesis gas (syngas), a mixture consisting primarily of carbon monoxide (CO) and hydrogen (H2).

The pilot gasification plant includes a drying and milling system developed specifically for Victorian coal. It has produced about 1 tonne of hydrogen gas.

Stage 2. Gas Refining

Location: Loy Yang, Latrobe Valley

This element of the pilot supply chain will demonstrate the production of hydrogen from syngas.

During gas refining, the syngas is purified when reacted with steam to produce additional hydrogen and carbon dioxide. The carbon monoxide is converted to carbon dioxide with steam, then the hydrogen is separated. For the pilot phase, carbon credits have been purchased for the CO2 produced and a carbon capture and storage system will be implemented for the commercial phase.

The hydrogen produced will be refined to achieve a high purity specification for transportation. Hydrogen purity of 99.999% has already been achieved.

Stage 3. Road Transport

Location: Latrobe Valley to Port of Hastings

Hydrogen gas will be transported to the liquefaction plant at the Port of Hastings by road in high pressure tube trailers. This method of transporting hydrogen gas is common practice in Australia.

HESC Transport Map

Status of the Latrobe Valley plant:

  • Hydrogen gas in now successfully being produced.
  • In the Latrobe Valley, approximately 150 direct jobs have been created for the construction phase, while 10 are operating the facility.
  • The site has an overall footprint of approximately half a hectare (5,000 square metres). 
Latrobe Valley FAQ