The Port of Newcastle could potentially be offering hydrogen bunkering within a decade under an ambitious proposal launched by the Australian port.
It has teamed up with Australian investment bank Macquarie Group and the Commonwealth Government’s Australian Renewable Energy Agency (ARENA) to support the development of a hydrogen economy in the Hunter Region of New South Wales.
Port of Newcastle and Macquarie's Green Investment Group have launched a AUD3m ($2.2m) feasibility study into the development of a green hydrogen hub at the port that includes the backing of a AUD1.5m funding grant from ARENA.
The Port of Newcastle Hydrogen Hub will initially be underpinned by a 40MW electrolyser that over time would increase to a capacity of more than 1GW.
“The feasibility study into the initial 40MW hub will determine a broad and comprehensive range of potential use cases for green hydrogen,” the port said.
“These include mobility, bunkering, energy production and industrial uses at the scale necessary to position the Hunter at the centre of the emerging global green hydrogen opportunity.”
The port said that once the feasibility study has been completed, it can determine whether the project can move into development and construction.
“While it is too soon to estimate when the project would commence operations, our goal is to be at 1GW capacity by 2030 so that we can support a range of domestic and export industries,” it added.
Port of Newcastle chief executive Craig Carmody said it makes “perfect sense” for the port to play a substantial role in Australia’s bid to become a “significant renewable exporter”.
“By partnering with Macquarie’s Green Investment Group to develop the Port of Newcastle Hydrogen Hub Project, we are tapping into the expertise of a world-leading renewables developer, investor and financier,” he said.
Macquarie’s Green Investment Group head of industrial transition and clean fuels, Kate Vidgen, said Port of Newcastle has “significant scope for producing green hydrogen at the scale required to make it price competitive internationally”.
Carmody added: “The potential for the Port of Newcastle to export hydrogen overseas as a tradable energy commodity is a huge coup for the region, positioning the Port of Newcastle to provide the backdrop for Australia’s future export opportunity and remain a world-leading energy export hub.”
The Port of Newcastle currently handles around 4,400 ship movements and 164m tonnes of cargo annually, including dry bulk, bulk liquids, ro-ro, general, project cargoes and containers.
