12 March 2021

Victoria, Australia

The Hydrogen Energy Supply Chain (HESC) Pilot Project is developing a complete hydrogen supply chain, creating hydrogen gas via the gasification of Latrobe Valley coal, transporting to the Port of Hastings for liquefaction, and shipping to Japan. 12 March marks the commencement of operations at both Victorian sites of its world-first integrated supply chain.

The commencement of the Australian arm of operations, using Latrobe Valley coal to produce hydrogen, is a world first and a great leap forward for the country’s ambition to be a key player in the emerging global hydrogen economy. This HESC Pilot is being delivered by a consortium of experienced industry partners from Japan and Australia including Kawasaki Heavy Industries, J-POWER, Iwatani Corporation, Marubeni Corporation, AGL and Sumitomo Corporation, supported by the Victorian, Australian and Japanese Governments.

The Victorian and Commonwealth Governments’ CarbonNet Project is developing in parallel with HESC and is essential for the hydrogen pilot’s commercialisation. If both projects are commercialised, CO2 captured during hydrogen production would be transported and stored by CarbonNet using carbon capture and storage (CCS) technology. Rather than entering the atmosphere, CO2 emissions would be safely stored in rocks 1.5 kilometres beneath Bass Strait, similar to the way oil and gas has been trapped naturally for millions of years.