‘Energy crossroads’: Could gas terminal halt port’s hydrogen hub?

Viva’s gas import terminal could block the development of a hydrogen hub at Geelong’s port, according to documents tabled last year.

Final protest targeting the Gas Import Terminal at Steampacket Gardens.

Viva’s gas import terminal could impact the development of a hydrogen hub at Geelong’s port, according to expert witnesses.

Last week GeelongPort and Fortescue Future Industries announced a feasibility study to investigate the construction of a green hydrogen production and export facility.

But environmental activists and action groups say Viva Energy’s proposed floating gas terminal, to be moored on an extension to refinery pier, could prevent the project from being realised.

The LNG (liquefied natural gas) tanker Flex Volunteer. (Photo by Sebastien SALOM-GOMIS / AFP)

GeelongPort expert witness Martin Mannion told a state inquiry last year the port had initially planned to use the same pier for its own hydrogen project.

His statement said the terminal would “preclude development of the proposed GeelongPort Hydrogen Hub project” nearby the terminal.

But another port submission to the process said the hub was of “limited relevance” to the state assessment.

The submission concluded that at the project’s early stage it was “not the case that physical conflict between any locations proposed to be used for the Hydrogen Hub” be the reason the gas terminal not proceed.

The $250m terminal plans are in the hands of the state planning minister.

A GeelongPort spokeswoman said the company had committed to exploring a range of potential site options.

“As recently announced, GeelongPort has partnered with FFI to undertake a feasibility study to construct a green hydrogen production facility,” she said.

“As part of this study we will be assessing a range of options including potential site locations and port facilities.”

The company had opposed the floating gas terminal until withdrawing from the inquiry process last year after entering into a commercial agreement with Viva Energy for the pier’s extension and construction.

At the time, a port spokeswoman said the port had a “binding, legal obligation to provide current and future port users access to its facilities”.

Geelong Renewables Not Gas spokesman Darcy Dunn said Geelong was at an “energy crossroads” when it came to the two projects.

“Both projects propose to use the same pier infrastructure. Approving Viva’s gas terminal would block a much better future in renewable energy,” he said.

“We face a choice between a polluting gas terminal that has no long term future and a renewable hydrogen project that could set us up to benefit from the clean energy economy for decades.”

A proposed Newcastle gas terminal – backed by the NSW government – was shelved by South Korean backers last month, citing international market conditions.

A Viva spokesman told the Geelong Advertiser last year and final investment decision would be made after the Victorian government’s decision had been announced

“Viva Energy’s proposed Gas Terminal will provide critical infrastructure to deliver a secure supply of gas ahead of forecast shortfalls in the coming years,” he said.

“The project will bring new skills, economic activity and opportunities for Geelong, including 150+ construction jobs and 50-70 permanent positions.”

On Tuesday, Viva Energy chief executive Scott Wyatt said the terminal’s fate rested with customers looking to bring gas into the country.

“I think we’ll understand that a bit more once we’ve got approval from the Victorian Government, to sit down and have those conversations with the customers with a project which then is ready to move forward,’” he said.

Originally published as ‘Energy crossroads’: Could gas terminal halt port’s hydrogen hub?