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THE HESC joint venturewas chosen as the preferredhydrogenprovider to Japan Suiso Energy (JSE), which comprises Kawasaki Heavy Industriesand IwataniCorporation. The $2.35 billion funding comes from the Japanese government’s Green Innovation Fund. The Ministry of Economy,Trade and Industry (METI) launched the $US16billion Green Innovation Fund Project fund set up to provide 10 years of continuous support to business-led decarbonisation initiatives, ranging from R&D and demonstration to social implementation,with specific goalsshared between the public and private sectors.

Japan Suiso Energy chief executive, Dr Eiichi Harada, saidafter adecadeofwork with the Japanese,Australian and Victorian governments, “our efforts to to establish aworld-first clean hydrogen energy supply chain have been rewarded”. “This is truly awatershed moment for ourcombinedefforts to decarbonise global energy production,”hesaid.

“This commitment of $2.25b gives all participants in the hydrogensupply chainthe confidence to progress to the next stage of commercialisation.”

The carbon intensity of the hydrogen produced willbeverifiedunderthe Guarantee of Origin scheme, which is being developed by the federal government in-line with globalhydrogenmarkets HESC says this will facilitate the accurate assessment and determination of the carbon intensity (kgCO2/kgH2) of hydrogen produced.

Mr Stone said there was great domestic interest in areliable source of locally produced, cost competitive clean hydrogen. “Now we have countries establishing the definition of ‘clean hydrogen’, based on carbon intensity, we are seeing an opening of trade, based on credible and transparent CO2 reduction numbers,atvariousprice points,” he said.

“We are expecting further offtake agreements for hydrogen that can be used by awide range of businesses and industrial processes, including the production of ammonia, fertiliser and methanol.”

In January last year, HESC’s pilot plantshowed that cleanliquid hydrogen could be extracted from amix of Latrobe Valley coal and biomass, liquefied, shipped and unloaded in the port of Kobe in Japan. HESC saidthis was aworld first achievement.The Australian and Victorian governments contributed $100 million in funding to this $500 million project. Therest was invested by the Japanese government and project partners.

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