Hunter Hydrogen Hub
Hunter Hydrogen Hub
The New South Wales Government will be facilitating discussions among stakeholders to progress development of a hydrogen hub in the Hunter region.
The New South Wales Government will be facilitating discussions among stakeholders to progress development of a hydrogen hub in the Hunter region
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New South Wales, Australia
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 Hunter region is one of two key regions in New South Wales that can benefit from becoming a major green hydrogen hub (the other being the Illawarra region centred around Port Kembla).
A specific objective of the Net Zero Industry and Innovation Program is to develop hydrogen hubs in New South Wales, with a focus on the Hunter and Illawarra regions, which will be supported by AUD$150 million of State grant funding. The development of green hydrogen hubs will also be supported by the New South Wales 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 development 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, the Hunter Hydrogen Taskforce, an initiative led by the University of Newcastle, released the Hunter Hydrogen Roadmap; the roadmap identifies seven strategic enablers that would optimise the hydrogen opportunity for the Hunter region and included Actions for each developmental time horizon (2021-2025: Prepare and Pilot; 2025-2035: Deploy and Scale; 2035+: Prosper).
Developing Hydrogen Hubs in New South Wales
Up to AUD$150 million of State grant funding (an increase from the original announced amount of AUD$70 million) is available to support the development of hydrogen hubs in New South Wales, with a focus on the Hunter and Illawarra regions (these monies being under the New Low Carbon Industry Foundations of the Net Zero Industry and Innovation Program).
In March 2022, the New South Wales Government noted that more than AUD$4 billion in potential investment proposals was received in response to Stage 1 (Expressions of Interest) of a competitive funding process for commercial-scale green hydrogen projects in New South Wales.
In May 2022, it was announced that 10 projects from the above-mentioned competitive funding process for commercial-scale green hydrogen projects in New South Wales have been shortlisted to progress to the full application stage (with awards targeted for the latter part of 2022). The shortlisted projects cover a wide range of end uses, including heavy transport, agricultural products, industrial feedstocks, power generation, gas blending and export.
The Hunter region of New South Wales includes several projects that are progressing technical and economic studies:
- Hunter Energy Hub – HyResource (csiro.au)
- Hunter Valley Hydrogen Hub – HyResource (csiro.au)
- Port of Newcastle Green Hydrogen Hub – HyResource (csiro.au)
Note: the October 2022-23 federal budget released on 25 October 2022 included a broad support measure of AUD$100 million to support the Port of Newcastle and the Hunter region to become hydrogen-ready.
Updated: November 2022