The federal government's latest investment in Newcastle's hydrogen "hub" will help pay for a pilot plant at Kooragang Island. Energy Minister Angus Taylor announced on Thursday that the government would spend $82 million on two hydrogen projects in Newcastle, in addition to the $100 million allocated to Port of Newcastle in last month's budget for infrastructure to help prepare the port for hydrogen exports.
As reported in Thursday's Newcastle Herald, the new money includes $41 million to joint venture partners Port of Newcastle (PoN) and Macquarie Capital for a "phase one" 40-megawatt green hydrogen electrolyser to be built at the port's "energy precinct" beside the coal loaders on Kooragang Island.
The port and Macquarie have not made a final investment decision on their project, but the Newcastle Herald understands a feasibility study funded by the Australian Renewable Energy Agency (ARENA) has produced promising results.
The government also will spend $41 million on Origin Energy's proposed 55MW green hydrogen electrolyser in Newcastle.
Origin is collaborating on the project with Orica, a potential customer, suggesting its hydrogen operation could be somewhere near the latter's ammonia plant on Kooragang Island.