Giant coal port inks deal with Japanese industrial giant to support green hydrogen mega-hub

The Port of Newcastle (PON) has signed an agreement with Mitsubishi Heavy Industries (MHI) to advance its hydrogen and ammonia ambitions as part of its plans to become a major Clean Energy Precinct (CEP).

Energy and logistics giant MHI operates the Takasago Hydrogen Park, in Hyogo Prefecture, Japan, touted as the world’s first facility that can play host to the full value chain of hydrogen, from production to power generation.

Under the agreement, MHI will act as an advisor to the PON in the development of its hydrogen and ammonia facilities.

The PON, formerly one of the world’s biggest coal ports, unveiled its plans to become a Clean Energy Precinct in early 2023.

The plans include using a 220-hectare parcel of land to develop a production, storage and export hub for clean energy products including hydrogen and green ammonia.

The port says it hopes to produce and export more than 660,000 tonnes of green ammonia per year from 2030 onwards, which it will primarily sell to nations like Japan and Korea, which have prioritised hydrogen imports as a way to meet their climate goals.

The port has also put its hand up to become an offshore wind hub, servicing the up to 5 gigawatts (GW) of floating turbine projects expected for the Hunter development zone.

The port’s hydrogen ambitions are supported by a $100 million funding grant for hydrogen readiness from the Australian government.

Newcastle is one of a number of Australian ports looking to pivot to clean energy production, storage and transport as the country’s coal-fired power stations wind down, but it’s the only port with clean-energy ambitions that is currently at the Front-End Engineering and Design (FEED) and Environmental Impact Statement (EIS) studies stage.

Those studies are being conducted by Lumea, CoNEXA and GHD for electrical, water and infrastructure, respectively.

Port of Newcastle CEO Craig Carmody has previously said the precinct is expected to support around 5,800 jobs during construction and add an estimated $4.2 billion to the Hunter regional economy.

Carmody said this latest partnership with MHI would be key to unlocking the port’s potential as a hydrogen-ready hub.

“MHI is at the forefront of the research and development of next-generation clean energy production technologies, so being able to tap into the wealth of expertise MHI possesses is going to be incredibly valuable in informing the future site layout, enablement and design of the Clean Energy Precinct,” he said.

“Takasago Hydrogen Park is the first in the world that can validate the full value chain of hydrogen from production to power and we will be able to utilise the knowledge MHI has in relation to chemical plant projects, including the production and handling of hydrogen, ammonia synthesis and storage, to best position the CEP, the Port and the Hunter Region for success as a future global hydrogen hub.”