Hydrogen Energy Supply Chain
Brown coal to hydrogen gas | Latrobe Valley, Victoria to Japan
CDI Lawyers has been engaged by Kawasaki Heavy Industries of Japan to act on the EPC phase of the Hydrogen Energy Supply Chain, a world first pilot project for the generation and transportation of hydrogen from Latrobe Valley, Victoria to Japan.
About the HESC project
The Hydrogen Energy Supply Chain pilot project aims to demonstrate the feasibility of the production, transportation and storage of hydrogen from Latrobe Valley, Victoria to Kobe, Japan.
The project will convert brown coal from the AGL Loy Yang mine into hydrogen at a newly constructed plant in Latrobe Valley. The hydrogen will then be transported by road to a liquefaction terminal at the Port of Hastings. Following liquefaction, the hydrogen will be shipped to Kobe, Japan.
Hydrogen presents a solution to the climate change and energy security problems faced all over the world, through its storage options, zero emissions and power generation potential. Hydrogen can be utilised to power a variety of land or sea based vehicles, in stationary fuel cells to heat or power houses, and as a means of producing power on a large scale.
The Australian portion
The Australian portion of the project is being delivered by a consortium of Kawasaki Heavy Industries, J-POWER, Iwatani, Marubeni and AGL. The Australian portion of the project is focused on the gas refining, transportation, liquefaction and storage of hydrogen in Australia.
The Australian and Victorian governments have contributed funding to the pilot phase of the project.
The project has the potential to provide a new hydrogen power generation industry for Australia, and a modern clean energy solution with low carbon emissions. The Hydrogen Council anticipates that the hydrogen market will be worth US$2.5 trillion by 2050.
The Japanese portion
The Japanese portion of the project is being delivered by the CO2-Free Hydrogen Energy Supply Chain Technology Research Association (HySTRA), which is comprised of Kawasaki Heavy Industries, J-POWER, Iwatani and Shell.
HySTRA is responsible for gasification of the hydrogen in Australia, as well as the shipping, unloading and storage in Japan.
Kawasaki Heavy Industries is emerging as a world-leader in hydrogen energy, and has developed a number of technologies to facilitate global hydrogen supply chains, including the liquefied hydrogen carriers that will be used for the pilot project.
CDI’s role in the project
A CDI Lawyers team lead by Christopher Rowden was engaged by Kawasaki Heavy Industries in 2018 to advise on the EPC phase of the onshore works in Victoria.
To date, CDI has advised Kawasaki Heavy Industries on a variety of issues including regulatory compliance, security for payment and risk mitigation in the Australian construction industry, and prepared contract documentation.
CDI is pleased to be part of this historic and landmark project, which advances the interests of Japan and Australia and provides the potential for a new low-emissions energy industry for Victoria. Our team looks forward to working closely with Kawasaki Heavy Industries throughout the pilot phase of the project.