Issue: 1

Date: November 2018

On behalf of Hydrogen Engineering Australia (HEA), and our Project Partners, Kawasaki Heavy Industries (KHI), J-Power, J-Power Latrobe Valley (JPLV), Iwatani, Marubeni and AGL, we are honoured and grateful to have established a meaningful partnership with the Japanese, Australian and Victorian Governments to demonstrate the world first Hydrogen Energy Supply Chain (HESC).

HESC is an exciting opportunity for Victoria and Japan to partner for mutual benefit and to work towards creating an environmentally sustainable low emissions solution which will put Australia on the frontline of clean energy provision here and around the world.

Since the launch of our project in April this year, we have made significant progress towards the successful integration of the pilot phase supply chain elements, which will operate from 2020 to 2021. Demonstrating the technical feasibility of the supply chain will be a significant milestone and pave the way for the creation of a new export and domestic industry in Australia.

In recent months, we have undertaken a number of activities that will allow us to commence construction of the pilot plant facilities across the supply chain footprint from next year.

Detailed design, engineering work and procurement have progressed for the Latrobe Valley and Hastings components.

For the hydrogen liquefaction and loading terminal at the Port of Hastings, we submitted a Planning Scheme Amendment request to the Victorian Minister for Planning earlier this year and we are pleased to advise that approval has now been granted. The amendment to the Mornington Peninsula Council Planning Scheme allows the use and development of highly-suitable land for the pilot phase facility.

For the gasification plant in the Latrobe Valley, we are moving forward with a Research, Design and Development application with the Environment Protection Authority. This will help enable timely commencement of construction activities in 2019.

In addition, the HESC Project Partners established two local subsidiaries in Victoria, Hydrogen Engineering Australia and J-Power Latrobe Valley, to deliver this important project close to the communities in which we will operate.

The Community Information Sessions in May were a great success and we are very pleased to see that there is great interest in our project and its role in the development of a low emissions hydrogen industry.

Most people we engage recognise the potential for the project to deliver new jobs and skills, in particular, the innovation and economic growth potential it brings to the Latrobe Valley.

There are also a number of important issues raised by communities and stakeholders which will shape how we deliver the project, including environmental management and safety. The feedback has also helped inform how we communicate and engage with interested communities moving forward.

Ensuring community awareness and acceptance of the pilot phase remains one of our highest priorities.  We are committed to working with local communities and integrating environmental, safety and social considerations from the outset, and for the long-term. We look forward to forging trusted working relationships with the Latrobe Valley and Hastings communities throughout the project.

More broadly, it has been a very important year for the development of the hydrogen industry in Australia. The HESC Project Partners are excited to see policy developments devoted to creating the right conditions to enable a safe, viable, thriving hydrogen industry for Australia in which HESC will play a significant role.

In particular, the ‘Hydrogen for Australia’s future’ briefing paper released by the Chief Scientist for the COAG Energy Council in August; and the ‘Opportunities for Australia from hydrogen exports’ report by ARENA both highlight that ‘Australian hydrogen exports could contribute to A$1.7 Billion and provide 2,800 jobs by 2030’. Both publications are available on the HESC website.

We are also excited that, at the next COAG Energy Council meeting in December, the Chief Scientist will release his plan to develop a comprehensive hydrogen strategy for Australia in 2019. Outlining a plan to develop potential policy incentives and effective regulatory frameworks will be important to encourage private investment in Australia and, in turn, realise the hydrogen potential. We remain fully committed to collaborating with the Australian Governments and contribute to a world leading national hydrogen policy.

Until next time, we wish you a safe and happy Christmas.

Best wishes,

Dr Eiichi Harada

Managing Director, Hydrogen Engineering Australia

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Hydrogen Engineering Australia (HEA), a brand new company based in Melbourne, and a subsidiary of KHI, supports the local administration working for the overall HESC, including the operation of components in Hastings.

J-Power Latrobe Valley (JPLV), also a recently launched company based in the Latrobe Valley and is a subsidiary of J-Power, to manage the operation of components in the Latrobe Valley.