Plan to turn Latrobe Valley’s coal into hydrogen hits major roadblock
A multi-billion dollar bid to convert coal from the Latrobe Valley into hydrogen has hit a major roadblock after an international partner walked away from a trial in the region.
Japanese media reported on Friday that Kawasaki Heavy Industries had withdrawn from the trial to develop a hydrogen network.
The original plan was to establish an international supply chain to produce hydrogen from the valley’s coal and use commercially unproven CO2 capture and storage technology to sequester carbon in the Bass Strait.
Brown coal from the valley would have been extracted and turned into hydrogen, which would then be piped more than 150 kilometres from Gippsland to the Port of Hastings before being shipped to Japan.
The project received $50 million each from the Victorian and federal governments, while also receiving $2.35 billion from the Japanese government.
But reports from Japan indicate Kawasaki has backed out of the plan due to potential difficulties procuring hydrogen within the 2030 deadline.
The Nekkei, reported :
The completion of the demonstration by 2030, which was originally planned, was an absolute condition for ensuring competitiveness,
“The company will now look to procure hydrogen from within Japan and hydrogen carriers will also be reduced in size as the company steers towards ‘a real solution’.”
In a statement, Kawasaki Heavy Industries confirmed the commercial demonstration phase of the project would occur in Japan due to time and cost pressures.
Kawasaki Hydrogen Project Group executive Yasushi Yoshino said the company was committed to the Gippsland town.
He said,
The change to phase one of the project does not impact Kawasaki’s commitment to a commercial scale project in the Latrobe Valley and Kawasaki remains committed to the Latrobe Valley and Victoria,
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Plan to turn Latrobe Valley’s coal into hydrogen hits major roadblock, source
