Port of Newcastle Green Hydrogen Hub (Archived)
Port of Newcastle Green Hydrogen Hub
A feasibility study has been completed by the proponents. The feasibility study investigated the technical and commercial viability of renewable hydrogen and ammonia production at the Port of Newcastle, New South Wales.
Macquarie Green Investment Group, Port of Newcastle
|Main end-use classification:
Initial 40-megawatt facility – domestic use
Longer term potential – export potential, domestic use
Feasibility study was underpinned by a 40-megawatt (MW) electrolyser concept and also evaluated a longer term potential scale-up to 1 gigawatt (GW) scale.
New South Wales, Australia
The project proponents have completed a feasibility study that assessed the viability of renewable hydrogen and ammonia production at the Port of Newcastle, initially at a scale to supply the domestic market and, as export (and further domestic) opportunities emerge, to scale-up production.
The feasibility study assessed the hydrogen hub concept at the Port of Newcastle, including concept design, costings and testing of offtake pathways and domestic use cases, for both an initial 40-megawatt (MW) electrolyser deployment, as well as assessing a scale-up to 1 gigawatt (GW).
The study was to be undertaken in two stages:
- Stage 1 – primarily a desktop feasibility investigation for both the 40 MW deployment and scale up to 1 GW plus. Provided this high-level investigation provides sufficient evidence of feasibility, the project will continue to the next stage.
- Stage 2 – detailed investigations and costs with a focus on determining whether the project can proceed to Front-end Engineering Design (FEED).
The proponents did not progress the study beyond Stage 1 and have advised that the project as scoped will not be proceeding to the next phase of development.
The outcomes of a Stage 1 ARENA pre-feasibility study completed in May 2022 found that the initial scope was technically feasible but not commercially viable. The Port of Newcastle has indicated a focus on the development of enabling infrastructure at the port in connection with the development of its Clean Energy Precinct.
The Port of Newcastle would support hydrogen, and clean energy projects in the Hunter, by providing land, utilities, storage, transport and export infrastructure and services as part of the development of its Clean Energy Precinct at the Port. The Port of Newcastle is seeking to activate its 220-hectare, dedicated Clean Energy Precinct by 2025, and have export scale by 2028.
The pre-feasibility study results will help inform the vision for the hydrogen industry in the Hunter Valley region of New South Wales.
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.
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 AUD$150 million of grant funding.
The Port of Newcastle Green Hydrogen Hub was recipient of conditional funding of AUD$41 million under the Federal Government’s Regional Hydrogen Hubs Program – Hub Implementation stream. As the outcomes of the pre-feasibility study indicated that the initial scope was technically feasible but not commercially viable, the project proponents withdrew from the Regional Hubs Program.
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.
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.
Updated: March 2023