Update on Latrobe Valley Construction Schedule

Update on Latrobe Valley Construction Schedule

Completion of construction of the HESC Latrobe Valley plant site has been pushed out from June until August 2020.

COVID-19 has caused significant and unprecedented disruption across many industries and supply chains worldwide. This has resulted in a delay to the delivery of some plant components and associated construction works.

It is not expected that this delay will impact the project’s overall operation timeline.

As always, we remain fully committed to our ambitious, mutual hydrogen vision, and supporting government and industries in their efforts to responsibly transition to a secure, economically viable, low carbon energy future.

For further information please contact: info@hydrogenenergysupplychain.com or telephone 1800 875 251.

HESC Pilot locks in carbon offset measures

HESC Pilot locks in carbon offset measures

Hydrogen Energy Supply Chain (HESC) project partners are pleased to announce that the carbon offset arrangements for the pilot project have now been finalised.

The HESC project partners have entered into an arrangement with South Pole to invest in Australian Carbon Credit Units (ACCUs) which will contribute towards the Boobera Carbon Project in Queensland. This will offset emissions from the HESC Pilot project, ensuring the project can support a low-carbon future in Australia from its pilot phase.

Should the project proceed to commercialisation emissions from the brown coal gasification process would be managed through carbon capture and storage (CCS).

HESC has an important role to play in government and industry’s efforts to responsibly transition to a secure, economically viable, low carbon energy future.

Statement from HESC Project Partners on the COVID-19 situation

Statement from HESC Project Partners on the COVID-19 situation

COVID-19 is a once-in-a-century pandemic challenge, affecting communities and businesses around the world. 

The health and safety of our staff, contractors and communities are our primary concern.

As this situation continues to develop, the HESC Project is committed to putting in place measures to ensure that the risks to our staff, contractors, and stakeholders of contracting or transmitting the virus are carefully managed and, to the fullest possible extent, avoided.

All of our workplaces including our construction sites in Hastings and the Latrobe Valley are following the Australian and Victorian governments’ guidelines and regulations for hygiene, social distancing, public gathering restrictions and self-isolation.

The Hastings and Latrobe Valley construction sites have put in place rigorous processes to manage access and regulate human conduct in those sites. We continue to monitor developments and any updates to governments’ guidelines, and are committed to following government advice and adapting our measures accordingly.

As always, we will endeavour to communicate early and transparently to all our stakeholders any potential, relevant impact stemming from the COVID-19 pandemic on the HESC Project.

The HESC Project Partners acknowledge the significant efforts all governments, health workers, individuals and organisations are undertaking to combat this health crisis. We are grateful for everyone’s efforts and hope that you all stay safe during this difficult time.

We remain fully committed to navigating through these challenging times with resilience and continue working to our ambitious, mutual hydrogen vision.

For queries or further information in relation to this matter please contact us on email:info@hydrogenenergysupplychain.com or phone 1800 875 251

HESC Project achieves another significant milestone with the successful installation of the Liquefied Hydrogen Storage Tank on the SUISO FRONTIER

HESC Project achieves another significant milestone with the successful installation of the Liquefied Hydrogen Storage Tank on the SUISO FRONTIER

HESC Project achieves another significant milestone with the successful installation of the Liquefied Hydrogen Storage Tank on the SUISO FRONTIER

27 March 2020

Hydrogen Energy Supply Chain (HESC) project partners recognise the ground-breaking achievements by Kawasaki Heavy Industries, Ltd. (KHI) for another significant project milestone with the successful installation of the Liquefied Hydrogen (LH2) storage tank for marine transport on the SUISO FRONTIER.

KHI leveraged its extensive experience, technology and knowledge in cryogenic equipment manufacturing to attain state of the art, ultra-high thermal insulation performance for the LH2 storage tank.

The storage tank is a world-leading and game-changing technological development likely to boost the global hydrogen economy. It features a double-shell structure with vacuum insulation between overlapping inner and outer shell layers supported by high strength glass-fibre-reinforced plastic. The high performing LH2 storage tank will enable the safe transport of liquefied hydrogen in large quantities over long distances by sea, facilitating the creation of integrated hydrogen supply chains and hydrogen export around the world.

The SUISO FRONTIER is a key component of the HESC Project which will see the establishment of the world first international hydrogen energy supply chain, whereby liquefied hydrogen produced in Australia will be shipped to Japan. By progressing its ship building ambitions for world-leading and safe liquefied hydrogen carriers, KHI hopes to contribute to the achievement of the Sustainable Development Goals, and realising a sustainable Hydrogen Society.

Read the KHI media release.

Watch the video.

Image: Kawasaki Heavy Industries’ SUISO FRONTIER with liquefied hydrogen tank installed.

Role of HESC reconfirmed in Japan and Australia’s joint hydrogen statement

Role of HESC reconfirmed in Japan and Australia’s joint hydrogen statement

Japan’s Minister of Economy, Trade and Industry, Mr Hiroshi Kajiyama and Senator, the Hon. Matthew Canavan, Australia’s Federal Minister for Resources signed a Joint Statement of Co-operation on Hydrogen and Fuel Cells at the Australia-Japan Ministerial Economic Dialogue in Melbourne, on 10 January 2020, reinforcing both countries’ “strong commitment to deploying hydrogen as a clean, secure, affordable and sustainable energy source”.

The statement emphasised hydrogen as a key contributor to emissions reductions, “especially when produced from renewable energy or fossil fuels combined with Carbon Capture Utilisation and Storage (CCUS),” and acknowledged “the steady progress of the [HESC project] towards establishing an international hydrogen supply chain.”

The HESC Project Partners appreciated the reference to the HESC Project as a cornerstone of the bilateral relationship between Australia and Japan. This support highlights the importance of this project for the two countries. Fully realised, it will create a new Australian industry, built around clean hydrogen production, exports and technology.

The two Ministers’ reaffirmation of the importance of cooperation, both bilaterally and internationally, on harmonisation of hydrogen policies, market regulations, codes and standards, aimed at spurring international demand was also reassuring. This will be key to providing businesses with the necessary confidence and incentives to invest and realise the full hydrogen potential. In this regard, the Joint Statement overtly mentions the links between the two Governments’ national hydrogen strategies.

The HESC Project Partners look forward to continuing their collaboration with the Japanese, Victorian and Australian Federal Governments to support the implementation of this Joint Statement and its objectives through the successful implementation of the HESC Project.

Read the Joint Statement and Senator Canavan’s media release.

HESC Project achieves another major milestone with the launch of the world’s first hydrogen carrier

HESC Project achieves another major milestone with the launch of the world’s first hydrogen carrier

Hydrogen Energy Supply Chain (HESC) project partners congratulate fellow partner, Kawasaki Heavy Industries, Ltd. (KHI) in achieving a major project milestone today, launching the world’s first liquefied hydrogen carrier, SUISO FRONTIER at its Kobe works site in Japan.

Image of the Suiso Frontier marine carrier

The carrier has been developed specifically for the HESC project to transport liquefied hydrogen from the Port of Hastings in Victoria to Japan.

The launch of the SUISO FRONTIER follows other recent and significant HESC milestones including the commencement of construction of the project’s hydrogen liquefaction and loading terminal at the Port of Hastings in July, and the commencement of construction of the brown coal gasification and gas-refining plant in the Latrobe Valley in early November.

It also follows hot on the heels of the release of Australia’s National Hydrogen Strategy.

These events demonstrate a significant step forward in Australia and Japan’s pursuit of a hydrogen energy society and supports Australia in responsibly transitioning to a secure, economically viable, low carbon energy future.

The HESC project has the potential to be a game changer in the future, together with carbon capture and storage, providing an innovative, economically viable and environmentally conscious solution to producing hydrogen safely, through the conversion of brown coal to hydrogen.

Australia could be the first country to create a thriving hydrogen export industry with huge local economic benefits.

The Latrobe Valley has the resources, infrastructure and capacity to become the centre for a new energy industry using the area’s abundant coal resources in a sustainable manner and help Australia transition to a low carbon energy regime.

Following today’s launch the carrier will be installed with a vacuum insulated double-walled liquefied hydrogen storage tank with a capacity of 1,250m3.

Construction will be complete in late 2020 to complement the commencement of HESC pilot’s full operation by 2021.

Read the Kawasaki Heavy Industries media release.

Watch the launch event video.

SUISO FRONTIER Vital Statistics

  • ‘Suiso’ means hydrogen in Japanese
  • Length (overall): 116 m
  • Molded breadth: 19 m
  • Molded depth: 17.90m
  • Molded draft: 4.5m
  • Gross tonnage: approx. 8,000t
  • Tank cargo capacity: approx. 1,250m3
  • Main engine: Diesel Electric Propulsion
  • Sea speed: approximately 13 kn
  • Capacity: 25 people

The hydrogen story

The hydrogen story

The hydrogen story

Why hydrogen?

A global, clean energy solution

Hydrogen is a clean, adaptable energy and a commodity of the future. The most plentiful element in the universe, it can generate heat and power for everyday commercial, transport and residential use.

Hydrogen is also an energy ‘carrier’, meaning it is very effective for storing the energy used to produce it. It has the exciting potential to enable an energy transition that will result in a substantial reduction of global carbon emissions.

Demand for hydrogen is growing

Global demand for hydrogen is growing at a remarkable rate.

According to the Hydrogen Council, hydrogen could supply up to a fifth of global energy needs and generate a market worth US$2.5 trillion by 2050.

Exciting potential

Only certain countries, like Australia, have the capacity to produce hydrogen at scale.

Australia’s large brown coal reserves, such as those in Victoria’s Latrobe Valley, can be used to create a new and thriving hydrogen export industry.

Establishing a safe, cost effective global supply chain for hydrogen will present huge local economic benefits, the capacity to generate a significant number of jobs and a future clean energy source for domestic use in Australia. It is likely to reinvigorate Victoria’s energy industry by generating a competitive edge in a thriving new market.

A strategic project for Australia

With Australia’s economy centred on decades of successful energy development and export, Australia is now on track to claiming a large stake in the emerging hydrogen industry. To do this, Australia must find a cost-effective way to get hydrogen to customers – wherever they are in the world.

Now underway in the Latrobe Valley Victoria, the Hydrogen Energy Supply Chain project is a world first trial to demonstrate hydrogen production from brown coal and safe and efficient transport of liquefied hydrogen to Japan.

This world first initiative will further strengthen Australia’s enduring trade and investment ties with Japan. It could lay the foundations for a new industry built around hydrogen exports, mobility and hydrogen power generation.

On the home front, the commercialisation phase of the project is likely to generate a significant number of Australian jobs.

Australia has an opportunity to be a significant player in this market given it has one of the world’s largest recoverable brown coal reserves in Victoria. Producing hydrogen from brown coal is currently the most cost effective way of doing so.

The energy sector is examining what the future of energy will look like and there is a growing interest in hydrogen. From a social perspective, exploring an end-to-end hydrogen supply chain in the Latrobe Valley has great potential to bring an entire new industry to this region. This will help local communities transition to a clean energy future.

Japan’s hydrogen future

Japan is committed to a clean energy future and is investing in the technology and global supply chain partnerships to become a ‘hydrogen society’ by 2050.

In 2015, Japan became the first country in the world to introduce stationary hydrogen fuel cells into households. Today more than 300,000 Japanese homes have a fuel cell installed. Hydrogen demand in transport is booming, with more than 3,000 fuel cell vehicles on the roads in 2017.

Key targets of the Japanese Government’s hydrogen energy roadmap, approved by the Japanese Cabinet in December 2017, include:

  • 2030 – Development of CO2-free international hydrogen supply chains, including HESC
  • 2030 – Large-scale hydrogen power generation will be operating, three million homes will have a hydrogen fuel cell and around 800,000 Fuel Cell Vehicles on Japanese roads
  • 2050 – Replace traditional residential energy systems and Fuel Cell Vehicles to be able to replace conventional gasoline mobility.

Capturing carbon

Capturing and storing carbon will be essential for hydrogen production to be scaled up to commercial levels. This will ensure carbon emissions are minimal and make hydrogen production virtually CO2 free.

The Australian and Victorian Governments’ CarbonNet Carbon Capture and Storage (CCS) Project presents a potential solution for CO2 mitigation in the commercial phase.

During the pilot phase, carbon emissions from the project will be very low – about the same as emissions from 20 cars. 

The International Energy Agency projects that Carbon Capture and Storage is vital for reducing emissions across the global energy system.

Supply chain

Supply chain

The HESC Project will adopt well-developed technology already used around the world, including in Australia. It will also bring new technologies to Australia that have been exhaustively tested and successfully demonstrated in other countries, including Japan.

The pilot phase will aim to demonstrate a fully integrated supply chain from source to destination. Construction of the pilot facilities, to be located in the Latrobe Valley and at the Port of Hastings, will commence in early 2019 and be operational for approximately one year from 2020 to 2021.


Hydrogen Production (Latrobe Valley)

A newly constructed hydrogen production plant located at the AGL Loy Yang Complex in the Latrobe Valley will produce hydrogen gas using technologies adapted specifically for Victorian brown coal.


Transport (Latrobe Valley to Port of Hastings)

Hydrogen gas will be transported to a liquefaction and loading terminal the Port of Hastings.

Conventional high pressure tube trailer trucks will be used in the pilot phase. A pipeline is envisaged for the commercial phase.


Liquefaction and loading (Port of Hastings to Japan)

The hydrogen will be liquefied to low temperatures, then shipped to Japan by an innovative, world first carrier specifically developed for the task.

Latrobe Valley

Hydrogen gas will be produced at a newly constructed plant located at the AGL Loy Yang Complex in the Latrobe Valley.

Port of Hastings

A newly constructed liquefaction, storage and loading facility will convert hydrogen gas (H2) to liquefied hydrogen (LH2) using existing commercial technology already in use overseas.

Community and sustainability

Community and sustainability

Hydrogen is the clean energy and commodity of the future to help address the need to diversify the world’s energy sources and reduce carbon emissions. HESC has potential to create a new thriving hydrogen export industry for Australia, with huge local economic benefits.



HESC will bring huge local economic benefits.

The global hydrogen market is expected to grow to approximately $2.5 trillion by 2050 (Hydrogen Council).


The commercial phase is predicted to create a significant number of Australian jobs and lay the foundations for a new industry in Australia.


Australia has the unique opportunity to learn from innovative technologies through the development of this new industry.
HESC Project Partners have established working relationships with credible research organisations to share insights, technology and innovation emerging from the pilot project.

The HESC Project, like any new commercial industry development, is projected to trigger the development of downstream opportunities for hydrogen in Australia, including in mobility, power generation, storage and broader technology sectors. A new domestic hydrogen market will act as a catalyst for further research and development activities, attracting further investment in Australia.


The global hydrogen market is growing. Hydrogen is not merely the energy of the future, it is a real opportunity, right now. Hydrogen belongs to a mix of technological solutions which have been identified as able to provide affordable, reliable, safe and secure and sustainable energy and mobility systems.

Hydrogen is tipped as one of the most promising and clean energy carriers for the 21st century. The global Hydrogen Council says hydrogen could supply up to a fifth of worldwide energy needs by 2050 (Hydrogen Council, Hydrogen Scaling Up, November 2017).


Hydrogen gives off no carbon emissions when used for electricity production in fuel cells or gas turbines. It can be produced with near-zero emissions from coal or gas, when coupled with carbon capture and storage (CCS), at a relatively low cost.

The HESC project will create a sustainable solution for the use of Australian coal deposits that does not contribute to carbon emissions. The project is considering carbon offsets to mitigate the CO2 produced by gasification and gas refining process. 

With its abundant natural resources and first class (export) infrastructure, Australia could be the first to create a commercially viable global supply chain for hydrogen, a commodity in growing demand globally.

Carbon capture and storage

CCS involves capturing carbon dioxide (CO2) that would otherwise be emitted into the atmosphere from industrial sources and transporting it to a suitable geological storage site for safe, long-term storage deep underground.

CCS is a proven technology at commercial scale. There are now 22 commercial scale CCS facilities globally (17 operating, 5 under construction/commissioning).

CCS is an important part of global action on climate change to meet the goals set at Paris in 2015 as emphasised by the IEA (2017) and as acknowledged through Mission Innovation (2017) – a global group of 22 nations and the EU advancing clean energy technologies.

As such, CCS will be an integral part of the commercial scale hydrogen supply chain from Victoria to Japan to enable a low emissions future.


The CarbonNet Project, which is jointly funded by the Australian and Victorian Governments, is investigating the potential for establishing a commercial-scale CCS network from the Latrobe Valley to offshore storage sites in the Gippsland Basin.

CarbonNet presents a potential CCS solution for the HESC commercial phase.

For more information on CCS, we recommend visiting the CarbonNet web page: www.earthresources.vic.gov.au/carbonnet

During the pilot phase, the hydrogen production process will create a small amount of CO2 – equivalent to annual emissions from about 20 cars.

While CCS will be a key aspect of a commercial-scale phase, CCS will not feature during the pilot project due to the small volumes of CO2 involved.