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The construction of a $ 500 million pilot project ($ 353 million) was launched to study the feasibility of converting lignite from the Latrobe Valley in Victoria, Australia into hydrogen for liquefying and exporting. in Japan.
Work began on liquefaction facilities related to the Hydrogen Energy Supply Chain (HESC) project in Port Hastings, Victoria, which the government estimates could generate A $ 2 billion in exports for l & # 39; Australia.
On the other side of Australia, Fortescue Metals recently partnered with CSIRO on hydrogen technologies to support the development of new industries, create jobs and pave the way for low emission export opportunities for the country.
Hydrogen production operations for the HSEC pilot phase have been established at the AGL Loy Yang mine, with operations building on existing coal gasification technologies specifically adapted to Victorian lignite. The hydrogen will then be transported to a liquefaction and loading terminal located in the port of Hastings, Australia.
"Once converted into liquid, the hydrogen will be shipped to Japan using an innovative first hydrogen carrier, designed specifically for the transport of hydrogen," said the HESC.
Australia's Minister of Natural Resources and Northern Australia, Matt Canavan, said today's round symbolizes new employment and investment opportunities for the region and the country.
"Australia is well positioned to become a world leader in hydrogen production and this pilot project is a crucial step towards realizing this vision. The Australian and Victorian governments have committed $ 50 million each to the $ 500 million project, which is also supported by the Japanese government and Japanese industry, "he said.
"This project is expected to be extremely beneficial for both countries, especially for the state of Victoria, which has the opportunity to develop an alternative and value-added use of its abundant brown coal reserves in the Latrobe Valley.
"The use of hydrogen is part of Japan's vision of a clean energy future and all emissions from the pilot project will be fully offset, with commercial-scale operations being required to use carbon capture and storage to ensure a low emission hydrogen source. "
The Minister of Trade, Tourism and Investment, Simon Birmingham, said the project was the first of its kind in Australia and was based on the strong and lasting business partnership between Australia and Japan.
"This pilot project is the first step in creating a commercial scale hydrogen supply chain that could generate billions of dollars in export revenue for the first time. Australia and help Japan achieve its strategic energy goals by 2030 and the following years, "he said.
"As global demand for hydrogen continues to grow, strategic investments such as this one could turn Australia into a major global exporter of hydrogen, particularly in countries like Japan and South Korea. .
"Australia has long been a reliable supplier of energy needs and there is no doubt that we are ideally placed to continue to meet these global needs by becoming a leader in hydrogen energy. Future commercial-scale operations in the Latrobe Valley and in the country will help turn Australia into a hydrogen power plant, generating significant economic benefits and thousands of additional jobs for Australians. "
For funding purposes, the pilot phase is divided into different parts: a part financed by Japan and a part by Australia.
The Australian-funded portion is coordinated by Hydrogen Engineering Australia (HEA), a consortium of project partners, including Kawasaki Heavy Industries (KHI), J-POWER, Iwatani Corporation, Marubeni Corporation and AGL. This part consists of refining the gaseous hydrogen in the Latrobe Valley, transporting it to the port of Hastings, converting it into liquid, and then loading it onto the shipping carrier.
The Japan-funded portion of the ESCh pilot phase is coordinated by HySTRA (Hydrogen Emission Supply Chain Association), which acts on behalf of KHI, J-POWER, Iwatani Corporation and Shell. The part financed by Japan includes converting lignite to gas in the Latrobe Valley, transporting liquid hydrogen by sea, and then unloading it in Japan.
The HSEC project will be developed in two phases:
- The pilot phase will demonstrate a fully integrated supply chain between Australia and Japan over one year by 2021;
- The decision to move to a commercial phase will be made in the 2020s with targeted operations in the 2030s, depending on the successful completion of the pilot phase, regulatory approvals, social license to operate and operate. the demand for hydrogen.
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