Fortescue Future Industries (FFI) and AGL Energy (AGL) have agreed to undertake a feasibility study to repurpose infrastructure at the Hunter Valley’s Liddell and Bayswater coal-fired power stations in Australia to generate green hydrogen from water, using renewable energy.
This announcement reinforces Australia’s potential to become a global green hydrogen superpower, in the process creating thousands of local direct and indirect jobs and strengthening economies in regional Australia.
The Liddell and Bayswater power stations currently account for over 40% of New South Wales’ CO2 emissions, according to 2019 National Greenhouse and Energy Reporting data.
Successful repurposing of these sites will supercharge New South Wales to meet its target of halving its emissions by 2030, and prove the role of green hydrogen in decarbonising and demethaning energy and industry in Australia.
The Hunter Valley Industrial Clean Energy Hub is expected to support thousands of jobs once complete, in addition to creating a new regional domestic and export industry in green hydrogen.
Pending the feasibility study’s outcomes, initial renewable electricity production through new wind and solar could be 250 MW, generating 30 000 tpy of green hydrogen, or enough for a hydrogen-fuelled truck to drive to the moon and back five times.
Ultimately, due to the scalability of electrolysers, estimates suggest production will be in the GWs. Power for the electrolyser will come from new wind, solar, and supported by new pumped hydro and batteries, generated by FFI, AGL and other parties.
The feasibility study forms part of the non-binding Memorandum of Understanding (MoU) between FFI and AGL will also assess whether green hydrogen can be used to fuel co-located industries, in addition to export options.
This announcement aligns with the New South Wales Government’s strategy to develop an innovative and competitive green hydrogen industry that delivers reliable domestic supply of green hydrogen and new export opportunities.