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Hydrogen Energy Supply Chain Project for Latrobe Valley awarded AU$2.35 billion from Japanese Green Innovation government fundThe HESC Project is now entering the commercial demonstration phase with the commitment of JPY220 billion (AUD$2.35 billion) in funding from the Japanese government's Green Innovation Fund. By news@gippsland - 7th March 2023 - Back to News In February 2022, the Hydrogen Energy Supply Chain (HESC) Project successfully completed its pilot phase with the arrival of the world's first liquefied hydrogen carrier in Kobe, Japan with a load of liquefied hydrogen extracted from Latrobe Valley coal. 
Jeremy Stone, Non-Executive Director of J-Power Latrobe Valley Commercial demonstration phaseThe HESC Project is now entering the commercial demonstration phase with the commitment of JPY220 billion (AUD$2.35 billion) in funding from the Japanese government's Green Innovation Fund, as Australia and Japan pursue their own net-zero emission goals. UpstreamJ-Power and Sumitomo have formed the J-Power Sumitomo Corporation Joint Venture (JPSC JV) for producing hydrogen via coal gasification using carbon capture and storage. DownstreamKHI and Iwatani Corporation have formed Japan Suiso Energy (JSE) to oversee the liquefaction, loading, transportation and unloading of hydrogen to Japan. Preferred hydrogen providerJ-Power/Sumitomo Corporation Joint Venture selected as preferred hydrogen provider by Japan's Green Innovation Fund. An Australian joint venture between Japanese organisations J-Power and Sumitomo Corporation (JPSC JV) has been selected as the preferred hydrogen provider to Japan Suiso Energy (JSE). The clean hydrogen gas will be produced in Gippsland, Victoria and H3:JSE will liquify the hydrogen for export to Japan. The JV will produce the clean hydrogen, extracted from Latrobe Valley coal with CO2 capture, utilisation and storage (CCUS). J-POWER successfully produced 99.999 percent pure hydrogen gas, extracted from Latrobe Valley coal, as part of the Hydrogen Energy Supply Chain (HESC) Pilot Project, which achieved a world first liquid hydrogen supply chain with the delivery of the hydrogen at the Port of Kobe in Japan in February 2022. Major milestone and a recognitionJeremy Stone, Non-Executive Director of J-Power Latrobe Valley said; "Building on the success of HESC and J-Power's 166MW Osaki CoolGen project, we are excited to be one step closer to making commercial scale hydrogen production in Victoria a reality." "This is a major milestone and a recognition of Gippsland's unique ability to help reduce global CO2 emissions through the reliable production of large quantities of cost competitive and clean hydrogen," he said. The Latrobe Valley hydrogen production facility will benefit from the local skilled workforce, existing energy infrastructure and resources. The project will take advantage of one of several long-term CO2 storage solutions, including using the depleted oil and gas reservoirs in Bass Strait for the CO2 emissions that cannot be utilised. Achieve emission reductionJapan Suiso Energy CEO, Dr. Eiichi Harada said, "We are delighted to have selected the JPSC JV as the preferred supplier of clean hydrogen for the Japanese energy market as we continue our transition to a more sustainable clean energy future. We have received a commitment of JPY220 billion (AUD$2.35 billion) from the Japanese government's Green Innovation Fund to further progress this opportunity." "We look forward to working with the JV and the Victorian, Australian and Japanese governments to achieve the significant economic and emission reduction benefits that a commercial scale clean hydrogen project will deliver." Dr Harada said. The JPSC JV will initially produce between 30,000 to 40,000 tonnes per annum of gaseous clean hydrogen. A future potential production of 225,000 tonnes per annum, would reduce about 1.8 million tonnes per annum of CO2 from being released into the atmosphere (equivalent to the emissions of about 350,000 petrol cars). Subject to commercial agreements and meeting the required environmental permits and approvals, it is expected hydrogen production will commence in the late 2020's. Economic opportunityJeremy Stone said, "There is significant domestic interest in a reliable source of locally produced, cost competitive clean hydrogen. Now we have countries establishing the definition of "clean hydrogen", based on carbon intensity." "We are seeing an opening of trade, based on credible and transparent CO2 reduction numbers, at various price points. We are expecting further offtake agreements for hydrogen that can be used by a wide range of businesses and industrial processes, including the production of ammonia, fertiliser and methanol," he said. Australian media backgrounderAustralia's most advanced clean hydrogen project, the Hydrogen Energy Supply Chain (HESC) project in Victoria, has entered the commercial demonstration phase with the commitment of JPY220 billion approximately AUD$2.35 billion, in funding from the Japanese government's Green Innovation Fund. The funds will be delivered via Japan Suiso Energy (JSE) comprising Kawasaki Heavy Industries and Iwatani Corporation. A newly formed J-POWER and Sumitomo Corporation Joint Venture (JPSC JV) will supply 30,000 tonnes of clean hydrogen gas per year, to a JSE owned and operated liquefaction and shipping facility at the industrial Port of Hastings. Sustainable energy jobsThis major injection of capital enables JSE to design and build commercial scale facilities to liquefy and ship the hydrogen from Port of Hastings to the Port of Kawasaki in Japan, bringing significant economic benefits to Victoria and Hastings in particular. The JPSC JV will extract the hydrogen from Latrobe Valley coal with CO2 capture and storage facilities in the nearby Bass Strait. The project will help reduce atmospheric CO2 on the path to net zero by 2050 and at full commercial scale, creating many sustainable energy jobs, in the Latrobe Valley and Hastings. Progress in commercialisationJapan Suiso Energy CEO, Dr. Eiichi Harada said, "After a decade of working together with the Japanese, Australian and Victorian governments, our efforts to establish a world-first clean hydrogen energy supply chain have been rewarded. This is truly a watershed moment for our combined efforts to decarbonise global energy production. This commitment of AUD$2.35 billion gives all participants in the hydrogen supply chain the confidence to progress to the next stage of commercialisation." "This is a complex project and there is still some way to go in terms of approvals, design, construction and commissioning but this is a major boost for the Victorian economy on its journey towards a clean energy future", said Dr. Harada. "The project will bring new clean energy infrastructure and jobs to the Hastings and Latrobe Valley communities. Something, we think is very important as we support the people through this period of change, as well as the broader energy sector." Dr Harada said. Reduced global emissionsJeremy Stone, J-POWER Latrobe Valley Non-Executive Director said; "We are moving from startup to scale up phase, which is an exciting time for J-POWER and our joint venture partner, Sumitomo Corporation. Bringing commercial scale hydrogen production to the Latrobe Valley will act as a catalyst for growth in the broader Gippsland region, as complementary industries such as Ammonia, Fertiliser and Methanol are attracted to the opportunities it presents." "Gippsland presents a unique opportunity to help reduce global CO2 emissions through the reliable production of large quantities of cost-effective clean hydrogen. Beyond the abundance of natural resources, the area has unrivalled access to a skilled workforce, major energy infrastructure and viable long-term storage for captured CO2 in the Bass Strait. Subject to commercial agreements and meeting the required environmental permits and approvals it is expected hydrogen production will commence by late 2020s." Mr Stone said. Carbon intensityThe carbon intensity of the hydrogen produced will be verified using the Guarantee of Origin scheme which is being developed by the Australian government in-line with global hydrogen markets. This will facilitate the accurate assessment and determination of the carbon intensity (kgCO2/kgH2) of hydrogen produced. This provides certainty to customers that production and transport of clean hydrogen meets their carbon dioxide emission reduction requirements. The Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) support carbon capture and storage as a way of achieving carbon neutrality by 2050 and avoiding catastrophic climate change. BackgroundA summary of additional information has been included to give a background. HESCIn January 2022, the Hydrogen Energy Supply Chain (HESC) pilot Project achieved a world first by demonstrating that clean liquid hydrogen can be extracted from a mix of Latrobe Valley coal and biomass, liquified, shipped and unloaded in the port of Kobe in Japan. The governments of Australia and Victoria contributed a combined $100 million in funding to the $500 million project. The rest was invested by the Japanese government and Project Partners. For more information, visit the Hydrogen Energy Supply Chain (HESC) website. Japan Suiso EnergyJapan Suiso Energy (JSE) was established by Kawasaki Heavy Industries in 2021 as a company that will take research, planning, operation, and investment in the global supply chain of liquefied hydrogen. In 2023, Iwatani Corporation joined JSE, to create a world first global energy supply chain using liquefied hydrogen and contribute to the realisation of a sustainable decarbonised society. J-POWER / Sumitomo Corporation Joint Venture (JPSC JV)A joint venture between J-Power and Sumitomo Corporation, two large Japanese organisations will provide the hydrogen gas. J-Power (Electric Power Development Co., Ltd) is one of Japan's largest power utility companies with some 25GW of global energy generation. They are 50% renewable in Japan. J-Power invests in a range of clean energy projects around the world, including pumped hydro, wind, biomass, solar and clean hydrogen. Sumitomo Corporation is one of the largest trading houses in Japan with a wide variety of business activities including sales of products and services, import and export, trilateral trade, and domestic and international business investment. Aiming to create a next-generation business that will contribute to carbon-neutral society, Sumitomo Corporation is engaged in the business development in the field such as hydrogen, ammonia, forest, biomass, solar power, storage battery, subsurface energy, carbon credit, and CCUS. Green Innovation FundBased on the Green Development Strategy, the Ministry of Economy, Trade and Industry (METI) launched the Green Innovation Fund Project, a JPY 2 trillion (around USD 16 billion) fund set up with the New Energy and Industrial Technology Development Organization (NEDO) to provide 10 years of continuous support to business-led decarbonization initiatives, ranging from R&D and demonstration to social implementation, with specific goals shared between the public and private sectors. Pictures from Cox-inall Dentsu Creative website.
Source: www.gippsland.com Published by: news@gippsland.com

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Tim Bull urges Gippsland East communities to apply for the Tiny Towns Fund, offering $5,000-$50,000 grants to support tourism, liveability, and local projects for towns under 5,000 residents. - Danny O’Brien denounces Port Welshpool Coastguard funding snub despite 25-year-old vessel and critical rescue role
Danny O’Brien criticised the state government for overlooking Port Welshpool Coastguard, leaving its 25-year-old vessel unreliable, and urged clarity and reconsideration of funding decisions for critical local rescue services. - Gippsland’s growth at risk without urgent government investment in housing, infrastructure, warns One Gippsland Chair
One Gippsland warns growth could stall without urgent investment in housing and infrastructure to support workforce, energy projects, and address social, affordable housing shortages across the region. - Tim Bull urges Labor government to stop costly brumby culling amid Parks Victoria job and funding cuts
Tim Bull urges Labor to halt costly brumby culling in East Gippsland, citing job losses, funding cuts, and greater threats from feral pigs, while advocating for more responsible taxpayer spending. - Allan Labor government invests $860,000 to support and strengthen Men's Sheds across Victoria
The Allan Labor government is investing $860,000 to support 31 men's sheds across Victoria, funding upgrades, expansions, and new equipment to strengthen communities and foster connection through shared skills. - Victorian government confirms Australian Motorcycle Grand Prix will remain at Phillip Island with ongoing event support
Bass Coast Council welcomes Victorian Government confirming Australian Motorcycle Grand Prix will stay at Phillip Island, rejecting Albert Park move, ensuring ongoing funding, supporting tourism, jobs, and regional community benefits beyond 2026. - East Gippsland Council accepts $4.255M Commonwealth funding to progress Gippsland Lakes Shared Community Hub
East Gippsland Council has accepted $4.255 million Commonwealth funding to progress the Gippsland Lakes Shared Community Hub, finalising designs and preparing to tender construction for Paynesville lakeside community facility. - Labor government delivers $2.73M Sale Hospital upgrade, modernising Community Services building for Gippsland healthcare staff
The Allan Labor government is delivering a $2.73 million upgrade to Sale Hospital's historic Community Services Building, modernising facilities for healthcare workers, patients, and students through the Regional Health Infrastructure Fund. - Albanese government limits tribunal powers, undermining veterans' rights and restricting reviews of military honours
The Albanese government has limited the Defence Honours Tribunal, banning reviews of actions over 20 years old, restricting veterans' appeals, and undermining independent recognition of historic military bravery. - Allan Labor government backs regional footy and netball with $1.5M from 2025-26 Country Football and Netball Program
The Allan Labor government is investing $1.5 million in Morwell sports clubs through the Country Football and Netball Program, while opening new grants to upgrade regional facilities and boost community participation. - Martin Cameron criticises Labor government over delayed Morwell sobering-up facility, broken promises and lack of ministerial accountability
Martin Cameron criticised the Allan Labor government for failing to deliver the promised Morwell sobering-up facility, ignoring repeated parliamentary questions, leaving the Latrobe Valley without adequate public intoxication support. - Allan Labor government backs First Nations athletes in Eastern Victoria with new sports grants
The Allan Labor government has announced over $67,000 in Aboriginal Sport Participation Grants, supporting First Nations athletes in Eastern Victoria with travel, uniforms, and equipment to compete locally and nationally. - Labor government backs Moe's Ted Summerton Reserve upgrades with major investment in cricket, football and community facilities
Works have begun on Moe's Ted Summerton Reserve, delivering oval upgrades, lighting, new changerooms, and improvements through the Regional Sports Infrastructure Program, boosting community sport, events, jobs, and local participation. - Labor government slammed as Gippsland crime soars, Danny O'Brien warns communities are failed by weak laws
Danny O'Brien says Gippsland crime is surging under Labor, with major increases across all councils. He warns weakened laws, police shortages, and neglect leave communities unsafe, demanding stronger action and real consequences. - Martin Cameron slams Labor’s delayed Loy Yang rehabilitation plan, calling it tone-deaf and ignoring immediate Latrobe Valley job losses
Morwell MP Martin Cameron criticises Labor’s delayed Loy Yang rehabilitation plan, calling it tone-deaf, failing to provide immediate jobs or industry support for the Latrobe Valley amid coal power closures. - Tim Bull slams government over firewood shortages, fuel loads and lack of practical solutions
Gippsland East MP Tim Bull has slammed government policy for firewood shortages, warning rising bush fuel loads pose serious risks, calling for extended collection areas, longer seasons and practical fire management. - Darren Chester demands answers from council over delayed $5M Krauatungalung Walk boardwalk project delays
Federal MP Darren Chester demands East Gippsland Shire Council explain delays to the $5 million Krauatungalung Walk, seeking clarity on timelines, budget and design for the community-backed all-abilities boardwalk project. - Tribunal warns Albanese government's bill removes veterans' rights to review bravery awards and undermines Defence Honours system integrity
The Defence Honours and Awards Appeals Tribunal has accused the Albanese government of removing veterans' rights to review bravery awards, warning proposed reforms undermine fairness, independence, and recognition of Australia's war heroes. - Darren Chester braces Gippslanders demand for safer roads as funding stalls while initiatives like Cycling Without Age grow
Gippslanders demand urgent road repairs, with Princes Highway neglected for years, while initiatives like Cycling Without Age provide older residents joy, connection, and community engagement across the region. - Danny O’Brien urges Labor government to urgently fix South Gippsland Highway dangerous, deteriorating road conditions statewide
Danny O’Brien urges the Allan Labor government to urgently repair the deteriorating South Gippsland Highway, citing potholes, failing patches, and community frustration across key stretches before the busy holiday period. - Melina Bath urges Labor government to scrap emergency services tax as VFF survey shows farmers' frustration and concern
The Nationals' Melina Bath urged the Allan Labor government to scrap the emergency services tax, citing VFF survey findings showing widespread financial, mental, and regulatory pressures on Victorian farmers. - Melina Bath demands Allan government release clear construction timeline for Wonthaggi Hospital redevelopment stages
Melina Bath demands the Allan government release a clear construction timeline for Wonthaggi Hospital Stages 2 and 3, warning delays leave healthcare workers overburdened and residents facing escalating patient demand. - Danny O'Brien slams Labor for decade-long failure to fund replacement CFA stations in Foster and Mirboo North
Danny O'Brien has criticised Labor for failing to replace outdated Foster and Mirboo North CFA stations, saying volunteers face unsafe conditions despite years of promises and growing community contributions. - Melina Bath urges Allan government to prioritise urgent upgrades for Gippsland schools in poor condition
Melina Bath urges Allan Government to urgently upgrade Gippsland schools, highlighting 2025 report revealing many in poor condition, with ageing infrastructure and maintenance deficits impacting students’ education. - Melina Bath criticises Labor government shutting public beekeeping, threatening Victoria's food security and horticultural jobs
Melina Bath condemned the Allan Labor government's closure of public land beekeeping, warning it threatens food security, pollination, horticultural exports, and regional jobs, calling for policy reversal and support for apiarists. - Melina Bath urges Allan government to urgently address hazardous roadside vegetation threatening eastern Victoria communities
Nationals’ Melina Bath warns eastern Victoria communities face bushfire risks from overgrown roadside vegetation, urging Allan Government to implement slashing, controlled burning, and weed management to improve public safety. - Gippsland Water welcomes five local women into STEM internships, promoting diversity, innovation, and career pathways for students
Gippsland Water welcomed five local women into STEM internships, providing real-world experience, mentoring, and career pathways while promoting diversity, inclusion, and innovation across multiple departments this summer. - Melina Bath urges Allan government to end delays and deliver the long-promised Cape to Cape Plan
Pressure is growing on the Allan government to end years of delays and release the Cape to Cape Resilience Plan, ensuring urgent coastal protection and reflecting community feedback for Inverloch. - Melina Bath blames Allan government as Victoria's public housing waitlist surges amid worsening housing crisis
Victoria's housing crisis deepens as public housing waitlists surge past 60,000. Melina Bath blames the Allan government's inaction, rising taxes, and mismanagement for worsening homelessness and unaffordable rents across the state. - Tim Bull warns Victorian government policies leave record fuel loads, risking another mega-fire
Tim Bull warns Victorian government’s reduced fuel reduction policies and record bushfire fuel loads are creating conditions for another mega-fire, urging urgent action to protect communities and support firefighters’ efforts. - Danny O'Brien urges Allan Labor government to fix online rebate issues affecting CFA and SES volunteers' access to support
Danny O'Brien has urged the Allan Labor Government to fix the online-only rebate system, saying CFA and SES volunteers struggle to access support and deserve easier, paper-based application options. - East Gippsland children share ideas, hopes, and concerns to shape community and celebrate local voices through MFEG project
Nearly 800 East Gippsland children shared ideas and concerns through the MFEG project, highlighting community connection, recreation, environment, and social care, with postcards now displayed across local towns. - Melina Bath condemns Allan government, warns emergency services tax delay is political, not scrapped
Melina Bath condemned the Allan Government for misleading regional Victorians, warning the emergency services tax delay is political, not scrapped, and calling for its full abolition to protect farmers and communities. - Bass Coast Shire Council urges Victorian government, LSV to ensure lifeguard patrols continue safely, without cuts
Bass Coast Shire Council urges Victorian government and LSV to guarantee lifeguard patrols, warning proposed funding hike strains budgets while beaches remain high-risk, with recent drownings highlighting urgent safety needs. - Darren Chester slams Albanese government over bill limiting veterans' rights to appeal medal and bravery decisions
Shadow Minister Darren Chester has condemned the Albanese government's proposed Defence Honours Bill, claiming it restricts veterans' rights to appeal medal decisions and undermines the independent Tribunal's role in recognising bravery. - Tim Bull criticises Labor government for mismanagement, volunteer cuts, and inadequate fuel reduction ahead of high-risk summer season
Gippsland East MP Tim Bull warns communities face extreme bushfire risk this summer due to Labor’s volunteer cuts, ageing CFA fleet, inadequate fuel reduction, and failure to implement Royal Commission recommendations. - Peri Urban Councils urge state government to invest in infrastructure and support housing growth across regions
Peri Urban Councils Victoria is urging government investment in infrastructure after a new report recommended 40% of new homes be built in regional Australia, highlighting housing demand, high costs, and infrastructure pressures. - Stewart Road Bridge reconstruction in Kernot approved, $1.768M federal funding restores vital community infrastructure
Bass Coast Council’s Stewart Road Bridge reconstruction in Kernot approved, receiving $1.768 million federal funding, restoring safe access, supporting local residents, industry, emergency services, with tendering expected early 2026. - Martin Cameron questions Labor government for denying regional crime crisis and the ongoing failures of 'Bail Laws'
The Nationals' Martin Cameron has accused the Allan Labor government of failing Victorians with weak bail laws, after repeat offenders continue to walk free and regional crime remains out of control. - Coalition demands Albanese government regulate veterans’ advocacy sector after damning Senate committee report release
The Coalition urges urgent laws to regulate veterans’ advocacy, citing unethical practices, rising commercial providers, data risks, and unmet Royal Commission reforms to better protect vulnerable veterans and their families. - Tim Bull condemns Labor government for rejecting Jack’s Law, delaying vital reforms to prevent knife-related harm
Gippsland East MP Tim Bull criticises Labor for blocking Jack’s Law, a proven reform to enhance police powers, remove dangerous weapons, and improve community safety against knife-related violence. - Gippsland Water urges customers to follow permanent water saving rules during heat waves to maintain reliable supply and stability
Gippsland Water urges customers to use water wisely during heatwaves, follow permanent water saving rules, report leaks, and help maintain stable supply amid high demand and extreme conditions. - Danny O'Brien commends South Gippsland Shire for securing Nyora transport study funding, urges further state investment
Danny O'Brien has praised South Gippsland Shire Council for securing state funding for the Nyora Transport Study, urging the Allan Labor Government to follow through with real investment and road upgrades. - Martin Cameron slams Allan Labor government over year-long failure to clarify ownership of Traralgon vacant buildings
Nationals MP Martin Cameron criticised Labor's year-long failure to clarify ownership of Traralgon vacant buildings, after multiple ministerial referrals left residents concerned about neglect, squatters, and ongoing government inaction. - Darren Chester welcomes nearing completion of $2.2M Ensay Recreation Reserve redevelopment project
Darren Chester welcomed nearing completion of the $2.2 million Ensay Recreation Reserve redevelopment, praising community volunteers. The project delivers modern facilities, boosting sport, tourism, resilience, and connections. - Tim Bull trashes misused Treasurer’s Advance as Allan government wastes $9M on costly failed camping trial
The Allan government spent $9 million in emergency funds on a failed free-camping trial, creating "ghost bookings" and hurting local businesses, prompting Nationals MP Tim Bull to condemn the misuse and demand accountability. - Darren Chester slams Albanese government veterans medal review limit, undermining Tribunal independence
Shadow Minister Darren Chester has condemned Labor's legislation imposing a 20-year limit on veterans' medal reviews, arguing it undermines the Tribunal's independence and disenfranchises veterans and families seeking fair recognition. - Baw Baw Shire awards over $109,000 in community grants supporting 13 groups’ minor capital work projects
Baw Baw Shire Council has awarded over $109,000 in Community Grants to 13 local groups, supporting minor capital works that improve facilities, sustainability, and community wellbeing across the shire. - Melina Bath criticises politicised VEAC, failing land management, while $1.4M could fund bushfire prevention, environmental services
Melina Bath warns Victorian hunters and anglers against reduced services as Labor pushes VFA-GMA merger, urging proper funding, training, and enforcement to protect compliance, sustainability, and regional outdoor traditions. - Danny O'Brien congratulates Sandy Point and Loch Sport Men's Sheds receiving state funding to enhance community facilities
Sandy Point and Loch Sport Men's Sheds have received over $43,000 in state funding to upgrade facilities, recognising their vital role in supporting men's wellbeing and community connection. - Melina Bath said CFA volunteers face risks due to aging equipment and $55M funding shortfall since 2020
The CFA faces a $50 million deficit as volunteers fight fires with aging equipment, with funding lagging inflation despite Allan Labor’s claims, exposing ongoing crisis and growing pressure on brigades.
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