Australia’s leading clean hydrogen project, the Hydrogen Energy Supply Chain, is set to receive A$2.35 billion (~$1.6 billion) in funding from the Japanese Government’s Green Innovation Fund.
The investment will be overseen by Japan Suiso Energy, a joint venture between Kawasaki Heavy Industries and Iwatani Corporation, which will operate the liquefaction and shipping facility at Victoria’s industrial port of Hastings.
The project will extract hydrogen from coal in the Latrobe Valley, using CO2 capture and storage technologies in the nearby Bass Strait, with the newly established joint venture, JPSC, providing 30,000 tons of clean hydrogen per year.
The carbon emissions of the hydrogen produced will be assessed through the Guarantee of Origin system, being developed by the Australian government, to evaluate its carbon intensity.
The funding will enable JSE to create and build large-scale commercial facilities to liquefy and transport hydrogen from Victoria to Japan, generating economic benefits for the region and creating sustainable energy employment opportunities.
The Hydrogen Energy Supply Chain pilot project was launched in January 2022, demonstrating that pure liquid hydrogen can be obtained from a blend of Latrobe Valley coal and biomass.
The Australian Government and the state of Victoria jointly contributed $100 million to the $500 million project, while the remaining funds were provided by the Japanese government and the project partners.