Port of Newcastle Hydrogen Hub

May 10th, 2022

Port of Newcastle Hydrogen Hub

A feasibility study being undertaken by the proponents is investigating the technical and commercial viability of renewable hydrogen and ammonia production at the Port of Newcastle, New South Wales.

Main proponents:

Macquarie Green Investment Group, Port of Newcastle

Main end-use classification:

Initial 40 megawatt facility – domestic use

Longer term potential – export potential, domestic use

Status:

Under development – feasibility study

Estimated cost:

(Feasibility study)
AUD$3 million

Other involvement:

 

Production details:

Feasibility study is underpinned by a 40 megawatt (MW) electrolyser concept but will also evaluate a longer term potential scale-up to 1 gigawatt (GW) scale, with ability to produce up to 150,000 tonnes of hydrogen per annum.

Location:

New South Wales, Australia

Announced funding:

(Feasibility study)
AUD$1.5 million – Australian Renewable Energy Agency (ARENA)

(Hub Implementation)
Port of Newcastle Green Hydrogen Hub, NSW. Up to AUD$41 million – Australian Government Clean Hydrogen Industrial Hubs Program – Hub Implementation funding stream

Project description

The aim of the feasibility study is to assess 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 will assess the hydrogen hub concept at the Port of Newcastle, including concept design, costings and testing of offtake pathways, for both an initial 40 megawatt (MW) electrolyser deployment, as well as assessing a scale-up to 1 gigawatt (GW) plus.

The study is 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).

Memorandums of Understanding have been executed with a range of project partners who will participate in the feasibility study.

As well as determining whether it is feasible for the project to proceed to FEED, the 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 at least AUD$70 million of grant funding.

Milestones:

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.

April 2022: Under the 2022 federal election caretaker arrangements, it was announced that the Port of Newcastle Hydrogen Hub was recipient of up to AUD$41 million in funding support through the Australian Government’s Clean Hydrogen Industrial Hubs Program (Hub Implementation funding stream).

 

Updated: May 2022