Idemitsu Australia partners on study for export of Green Hydrogen and Ammonia at Port of Newcastle, Australia

Idemitsu Australia (IA) is proud to partner with Port of Newcastle Operations Pty Ltd (PON) and Macquarie Group’s Green Investment Group — a Memorandum of Understanding (MOU) has been signed to jointly study the feasibility of export and bunkering of green hydrogen and ammonia at Port of Newcastle, Australia.

The joint study is part of the Port of Newcastle Hydrogen Hub project to gradually commercialise manufacturing, storage, transport, sales and export of green hydrogen and ammonia.

Phase one of the project involves building a 40 MW electrolyser, producing around 5,000 tonnes of green hydrogen per year that will be used to produce 20,000 tonnes of green ammonia per year for the local fertiliser market. The green hydrogen and ammonia produced by the Port of Newcastle Hydrogen Hub will be generated using renewable energy.

The feasibility study into the initial 40MW Hydrogen Hub will determine a range of potential uses for green hydrogen which include mobility, bunkering, energy production and industrial uses at the scale necessary to position the Hunter region as an emerging global green hydrogen opportunity.

Phase one will receive a A$1.5 million support from the Commonwealth Government’s Australian Renewable Energy Agency (ARENA). The Commonwealth Government has been promoting renewable energy conversion to hydrogen as part of efforts toward decarbonisation. Australia has great potential for inexpensive and stable production of renewable energy to power green hydrogen production at a globally competitive level.

The study will include an assessment of an optimal site within the Port of Newcastle which has a range of options for developing and scaling-up green hydrogen and ammonia infrastructure to successfully link into existing East Coast supply chains. The joint study will also assess the pathway for export to Japan and will determine requirements for infrastructure for export, estimation of demand for export, as well as assess the feasibility of bunkering.

Through the joint study, Idemitsu will continue to strengthen its expertise in building a future CO2-free ammonia supply chain and for supplying low-carbon energy.

Chief Executive Officer of Idemitsu Australia, Steve Kovac said, “We are excited to partner with the Port of Newcastle and Macquarie in a study to examine the feasibility of bunkering and exporting green hydrogen and ammonia to Japan.

“The study is a critical step towards the supply of low-carbon energy solutions and forms part of the Port of Newcastle Hydrogen Hub project to build infrastructure to support green industries and deliver a pathway for green hydrogen and ammonia production. This is another exciting opportunity for the Hunter region as we continue to work on creating low-carbon and decarbonisation businesses, and actively participate in Australia’s energy transition.

“Idemitsu Australia brings deep expertise in exporting to Japan and South East Asia to help develop a strong supply chain for green ammonia to these key export markets. The project has the potential to achieve the scale necessary to be globally competitive,” he said.

Published by Idemitsu 22nd November 2021