Japanese Government and industry investing A$396 million in Australia’s hydrogen energy future

17 Apr 2018

A consortium of Japanese energy and infrastructure companies have partnered with AGL, and the Japanese, Australian and Victorian governments to create a hydrogen energy supply chain (HESC) between Australia and Japan.

The world-first HESC pilot project will produce liquefied hydrogen from brown coal in Victoria’s Latrobe Valley for export to Japan. The A$496 million pilot project is being co funded by the Japanese Government and an industry consortium led by Kawasaki Heavy Industries. The consortium also includes Marubeni Corp, J-Power and Itawani Corp. The Australian and Victorian governments are providing a combined A$100 million in funding to the pilot project.

Japan currently leads the world in the move to a hydrogen economy and identified Australia as the ideal partner for hydrogen imports to meet its future energy needs. Hydrogen energy is currently used in cars, electricity generation and industry.

The HESC pilot will create over 400 direct and indirect jobs, bringing technology and infrastructure to Australia that have already been successfully tested and demonstrated in Japan. If successful, the pilot could position Australia as a global leader in the supply of clean hydrogen energy.

At the HESC pilot project launch on 12 April, Prime Minister Malcolm Turnbull stated that the Australian Government is focused on creating the investment environment to drive projects like this one that create new industries and more jobs.

‘A commercial HESC project has the potential to grow to add more than A$8 billion to Australia’s economy,’ says the Prime Minister.

‘It is critically important that we invest in the energy sources of the future and that we affect the transition from older forms of generation to new forms of generation and we do so seamlessly.’

Depending on the successful completion of the pilot, regulatory approvals, community backing and demand for hydrogen, the decision to move to commercial production will be made in the 2020s and operations would be established in the 2030s. Visit HESC for more information.