Hunter Hydrogen Hub

November 14th, 2021

Hunter Hydrogen Hub

Development of a hydrogen hub in the Hunter region is in the concept discussions stage.

Main proponents:

The New South Wales Government will be facilitating discussions among stakeholders to progress the concept of a hydrogen hub in the Hunter region

Main end-use classification:

Under evaluation

Status:

Under development – concept discussions

Estimated cost:

 

Other involvement:

 

Production details:

 

Location:

New South Wales, Australia

Announced funding:

 

Project description

The introduction of ‘hydrogen hubs’ can reduce the cost of low-carbon hydrogen pathways by:

  • sector coupling: intelligent linking of systems and products can create new services and provide additional value
  • de-carbonising existing supply chains: locating hydrogen hubs in existing industrial areas can pave the way for displacement of fossil fuels in a cost-effective manner
  • co-location: hydrogen production facilities located in proximity to existing resource-based industries allows cost savings through utilisation of existing infrastructure and skills and enables economies of scale to be reached quickly
  • centres for industrial and academic excellence: creation of hydrogen hubs can attract hydrogen based industry, innovation and academic institutions

The New South Wales Minister for Energy and the Environment has indicated that the Hunter region is one of two key regions in the state that can benefit from becoming a green hydrogen hub (the other being the Illawarra region centred around Port Kembla).

A specific objective of the Net Zero Industry and Innovation Program announced by the NSW Minister for Energy and the Environment in early March 2021 is to develop hydrogen hubs in the Hunter and Illawarra, which will be supported by at least AUD$70 million of grant funding. The development of green hydrogen hubs will also be supported by the NSW Renewable Energy Zones (REZs) under the Electricity Infrastructure Roadmap.

Development of a hydrogen hub in the Hunter region can benefit from the already considerable existing energy and related industries and associated infrastructure and skills in the area (including ports and logistics capabilities).

The New South Wales Government is facilitating discussions among stakeholders to progress the concept of a hydrogen hub in the Hunter region.

The Hunter Valley region has been identified by the Australian Government as one of a number of prospective hub locations, based on interest of industry and the location’s existing capability, infrastructure and resources.

In November 2021, ARENA announced AUD$1.5 million in funding to support a feasibility study into the development of a 40 MW hydrogen hub located at the Port of Newcastle. The  study will be led by Macquarie Green Investment Group and the Port of Newcastle (and supported by project partners). As well as determining whether it is feasible for the project to proceed to Front-end Engineering and Design (FEED), the study results will help inform development opportunities for the hydrogen industry in the Hunter Valley region.

 

Updated: November 2021