Hydrogen caution

Production: Latrobe Valley coal gasification and refining facility. Photo: Supplied

PHILIP HOPKINS

By PHILIP HOPKINS

THE Victorian Premier, Daniel Andrews, has said the technology behind Japan’s $2.3 billion coal-to-hydrogen is unproven, as the government released the next stage of its policy to set up an offshore wind farm industry off Gippsland.

Mr Andrews said the coal-to-hydrogen technology, which includes the use of carbon capture and storage in empty oil and gas reservoirs under Bass Strait, was unproven, the Australian Financial Review reported. The state and federal governments contributed a combined $100 million to the $500 million successful pilot phase over the past five years.

“This is about technology that’s not yet proven up …. there’s many questions that are still unanswered,” he said last week.

“You’ve got a hydrogen project that’s all about trying to turn coal into hydrogen. The emissions profile of that process is directly relevant.”

The AFR reported that the Victorian Energy and Resources, and Climate Change Minister, Lily D’Ámbrosio, repeatedly refused to endorse the green energy project in parliament last week, in opposition to the support for the project by the Treasurer, Tim Pallas.

But Mr Andrews told the AFR that any tensions were unreal. “There’s a due diligence process and the due diligence is not yet finished. so, you always have to weigh up the strengths, benefits, pros and cons of any policy proposal. That work is being done; it hasn’t been finished,” he told the AFR.

Ms D’Ambrosio told parliament last week that the project would require a “thorough process” and “due diligence”, emphasising the government’s net-zero ambitions. “Everything that we do, speaker, is about reducing our emissions …. we will not be deviated from that,” she told parliament.

On the weekend, Ms D’Ambrosio released the Victorian Offshore Wind Energy Implementation Statement 2, which sets out how Victoria will leverage industry-led investment in offshore wind for the first tranche of projects that aim to produce at least 2 gigawatts (GW) of power by 2032.

The strategy confirms the location of the Victorian Renewable Energy Terminal at the Port of Hastings. The terminal will support wind construction delivery of up to 1 GW per year, process turbines up to 18 megawatts and service multiple offshore wind developments concurrently.

The terminal will undergo a thorough Environment Effects Statement (EES) allowing the community to make submissions, which will be considered before the project is progressed.

A Renewable Energy Supply Chain Hub will also be developed near offshore wind development areas. This infrastructure will kickstart the establishment of new renewable energy supply chain across Victoria.

Offshore Wind Energy Victoria (OWEV) will engage further with local businesses seeking to participate in the offshore wind energy supply chain about how best to build competitive capability.

Work will also begin on a renewable energy workforce development plan that will identify what skills and training is needed to support the industry, with a specific focus on Gippsland.

The strategy also outlines that VicGrid will lead on the development of transmission infrastructure for off-shore wind. It will consider a range of feasible options and is expected to announce the specific transmission connection point locations and route corridors in Gippsland and Portland by the end of the year.

This will aim to ensure the timely delivery of transmission infrastructure to support offshore wind while minimising impacts on local communities, the environment and consumer costs.