Commercial stage Brilliant Borough

By PHILIP HOPKINS

JAPAN’S Hydrogen Energy Supply

Chain (HESC) project, whichuses

Latrobe Valley brown coal to produce clean hydrogen, will proceed to its commercial stage through $2.35 billion funding from the Japanese government, positioning the Valley as amajor source of renewable energy.

The move to dramatically upgrade development of the project follows the successful provingofthe technologylast year at apilot plant located next to Loy Yang Apower station.

HESC, whichisregarded as Australia’s most advanced clean hydrogen project, is ajointventurebetween J-POWER, a major Japanese energy company, and Sumitomo Corporation. Jeremy Stone, J-POWER, Latrobe Valley non-executive director, said the companywas excited to be one step closer to makingcommercialscale hydrogen production in Victoria areality.

“This is amajor milestone and recognition of Gippsland’s unique ability to help reduce global CO2 emissions throughthe reliable productionoflarge quantities of costcompetitiveand clean hydrogen,” he said.

“Gippsland, beyond the abundance of natural resources, has unrivalled access to askilled workforce and majorenergy infrastructure. Theproject will bring new clean energy infrastructure and jobstothe LatrobeValleyand Hastings communities.”

HESC uses coal from the Loy Yang mine, where it is gassified in anearby plant, with the carbon dioxide extracted in the process to be sequestered under BassStrait.The aim is to liquefy the hydrogen and transport it via apipeline to the Port of Hastings, where it will be shipped to Japan.

Mr Stone said the CO2 would be sequestered either by CarbonNet or in the aquifers available from ExxonMobil. The final cost of the hydrogen would include the cost of the energy required to pump the CO2 to BassStraitand the cost of sequestration, he said.

Mr Stone said the IPCC (InterGovernmental Panel on Climate Change) and the International Energy Agency both backed carbon storage as a way to achieve zero emissions by 2050.

“Accordingtothe Global Carbon Capture and Storage Institute, over the past 45 years, 32 projects have been built and there are some 204 CCS projects under variousstagesofdevelopment around theworld,” he said.

The joint venture will initially produce about 40,000 tonnes per annum of gaseous clean hydrogen -30,000 tonnes for the Japanese market and 10,000 tonnes for the Australianmarket. In Japan, the hydrogen will be transported to Kawasaki City, close to Tokyo,where it will be used by the many industry departments, power generation and chemical producers.

The commercial plant is expected to be in productionbythe late2020sat about the same time as Yallourn W power station is scheduled to close.

Future potential production in the early 2030s, all going well, is estimated at about 225,000 tonnes per annum, which Mr Stone said wouldcreate thousands of jobs ayear.

The company said the project at this scale would stop about 1.8 million tonnes of CO2 being released into the atmosphere.

Mr Stonesaidsuchalarge project would require aplethora of planning, design, environmental, construction and commissioning approvals over the next few years.

“We are aware of the social licenceand environmental issues at play,” he told the Express

“However, we are not coming in cold. We have been here for five years and have long engaged with the government. We have alot of work to do and also to liaise with people in the region.”