Liddell and Bayswater power stations potential sites for green hydrogen hub, following MOU with AGL and Fortescue
Two of the Hunter’s leading advocates for business and energy transition welcome next milestone on hydrogen future for the region.
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Two iconic sites in the Upper Hunter have been earmarked as potential locations for the development of a green hydrogen hub.
AGL Energy and Fortescue Future Industries have signed a memorandum of understanding (MOU) to explore an industrial energy hub at Liddell and Bayswater power stations.
NSW Energy and Environment Minister Matt Kean made a trip to the Hunter on Wednesday morning to join Dr Andrew (Twiggy) Forrest of Fortescue and AGL Managing Director and CEO Graeme Hunt to unveil the news.
Dr Forrest said its goal was to turn regional Australia into a global green energy heartland.
“Repurposing existing fossil fuel infrastructure with forward looking companies like AGL to create green hydrogen to help power the world, is the solution we have been looking for,” Dr Forrest said.
“Green hydrogen is the only true zero-carbon, zero-methane fuel. Every other type of hydrogen requires the burning of fossil fuels.
“It is a practical, implementable solution that can collapse emissions and create strong economies worldwide.”
The ‘Hunter Energy Hub’ project would be powered by clean energy, delivered through grid-scale batteries, solar thermal storage, wind, pumped hydro and the co-location of industry.
It’s expected the project, along with others in the ‘Hunter Energy Hub’, could create around 1,000 permanent jobs across energy production, advanced manufacturing, recycling and the production of chemicals.
Mr Hunt said over the next 12 months, AGL would undertake a feasibility study.
“It will map key operational and commercial plans for the project and enable the development of a production timeline,” he said.
“Early estimates suggest the site can ultimately support a hydrogen facility of GW scale, but we will also test critical inputs including renewable energy costs, firming requirements, electrolyser capital costs, logistics and utilisation.”
AGL Chief Operating Officer, Markus Brokhof added that when completed, the ‘Hunter Energy Hub’ would be the first of its kind in Australia and set a model for our other sites and industry in Australia.
“Our aim for the hub is to develop strong partnerships that enable an efficient ecosystem and create a circular economy” Mr Brokhof said.
“Liddell and Bayswater benefit from unique energy infrastructure, positioned with strong grid connectivity, established transport links, workshops and proximity to water supply and industrial activity.
“As we move towards Liddell’s closure, I want to reaffirm our strong commitment to supporting our workforce and the Hunter region.
“The site and people who have worked here have been the backbone of the electricity grid and we’re committed to seeing it continue its legacy in the next phase of its life.”
Business Hunter CEO Bob Hawes agreed it is a significant step towards fulfilling the hydrogen future of the Hunter and builds on other recent announcements and initiatives progressed in the hydrogen economy.
“AGL has a strong and positive history of energy security and employment security in the Hunter,”Mr Hawes said.
“If consummated, this partnership will link together hydrogen plans with the likelihood of another strategic industry investment and implementation within the region.
“This is important if we are to realise our ambition to generate hydrogen production projects in the region.
“The MOU shows that a traditional energy supplier is motivated to diversify energy production to play a part in a net zero energy economy and re-generate activity at these significant sites.”
Cluster Manager for the Hunter Hydrogen Technology Cluster (NewH2), Clare Sykes also said the scale and scope of the project would bed down a large portion of baseload renewable power supply for the region, becoming a key piece in the net zero roadmap the state is working towards.
“The key indicators for at-scale uptake of Green Hydrogen are whether it can meet supply and export demands, and provide a positive and sustainable future for jobs in the energy markets including the hydrogen equipment technology and services sectors,” Ms Sykes said.
“By repurposing the Liddell and Bayswater sites, AGL and Fortescue Future Industries are seeking to meet this indicator, and the NewH2 Cluster will fully support the feasibility studies adding value where we can.”
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