Port Kembla Hydrogen Hub (Transferred to Hubs Webpage)

August 7th, 2023

Port Kembla Hydrogen Hub

The New South Wales Government is facilitating discussions among stakeholders to progress the development of a hydrogen hub in the Illawarra / Port Kembla region.

Main proponents:

The New South Wales Government is facilitating discussions among stakeholders to progress the development of a hydrogen hub in the Illawarra / Port Kembla region

 Main end-use classification:

Under evaluation

 Status:

Under development

 Estimated cost:

 
Other involvement:

 

 Production details:

 

 Location:

New South Wales, Australia

 Announced funding:

 

(This description has been archived, with viewers referred to the HyResource Hubs webpage. The New South Wales Government has highlighted the Illawarra / Port Kembla region as a major hub development opportunity. An overview of the development opportunity is included in the HyResource Hubs webpage, which describes major hub opportunities/initiatives across Australia.)

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 the 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: the creation of hydrogen hubs can attract hydrogen-based industry, innovation and academic institutions.

The Illawarra region is one of two key regions in the state that can benefit from becoming a major green hydrogen hub (the other being the Hunter region). Hydrogen development activity in the Illawarra region is centred around Port Kembla, the principal grain export port for southern and southwestern New South Wales and facilitates the region’s significant steel and mining industries.

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 Illawarra / Port Kembla region can benefit from the already considerable existing energy and related industries and associated infrastructure and skills in the area.

Development of large-scale (renewable) hydrogen production facilities would service initially domestic markets then scaling into potential export avenues through technology demonstration projects.

The New South Wales Government is facilitating discussions among several companies to progress the development of a hydrogen hub in the Illawarra / Port Kembla region.

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 NSW 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 Illawarra / Port Kembla region of New South Wales includes a number of projects that are progressing hydrogen-related project activities:

In October 2021, BlueScope and Rio Tinto signed a Memorandum of Understanding to research and design low-emissions processes and technologies for the steel value chain across iron ore processing, iron and steelmaking and related technologies. In December 2021, BlueScope and Shell signed a Memorandum of Understanding to explore and develop renewable hydrogen projects at BlueScope’s Port Kembla Steelworks facility.

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.

 

Archived: August 2023