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Martin Cameron criticises Allan Labor government for stalling $2B clean hydrogen project in Latrobe Valley

A Japanese consortium may withdraw $2.35 billion from the Latrobe Valley hydrogen project due to delays, with local MPs criticizing the Allan Labor government for hindering investment and job creation in the region.

By news@gippsland - 9th December 2024 - Back to News

A Japanese consortium has warned it is poised to pull $2.35 billion investment from a world-first coal to hydrogen project in the Latrobe Valley, prompting scathing criticism of the Allan Labor government by The Nationals' Member for Morwell, Martin Cameron.

Martin Cameron emphasized the rare opportunity for economic and emission reduction benefits from a $2 billion hydrogen project, showcasing confidence in local resources and workforce

Hydrogen economy boost

The Hydrogen Energy Supply Chain (HESC) project pioneered the conversion of brown coal to hydrogen gas, which is then liquified and shipped to Japan via the Port of Hastings. The pilot phase of the project was successfully completed in 2022.

On a commercial scale, Minister for Economic Development, Tim Pallas, said the HESC project would create "thousands of jobs" in the Latrobe Valley and provide a critical economic boost for the region.

Hydrogen future threatened

But Kawasaki Heavy Industries, representing the consortium of investors, said it had become too "difficult" to procure hydrogen in Australia, and cited lengthy delays and "ideological divides" as threats to the commercial viability of the project. "We have a once-in-a-generation opportunity to achieve the significant economic and emission reduction benefits that a commercial scale clean hydrogen project can deliver, and we have the chance to do it right here in the Valley."

"The Allan Labor government and its Minister for Energy, Lily D'Ambrosio, have sat on their hands and failed to enable investment in the Latrobe Valley to shore-up our future beyond the imminent accelerated closure of our coal-fired power stations."

"The willingness of the Japanese government to invest more than $2 billion in commercialising the project is an enormous show of confidence in our skilled workforce, existing infrastructure and abundant natural resources," Mr Cameron said.

Hydrogen project delays

Mr Cameron added, "During the final sitting week in Parliament I asked the Minister for Economic Growth if Labor would fast-track the required approvals for HESC given its significance to the Latrobe Valley, so to now find out that hold-ups within government are the reason this $2.35 billion investment may be lost is infuriating. We cannot allow the Latrobe Valley to be used as a political pawn. We need urgent investment in new industries, and we need it now."

Leader of The Nationals, Danny O'Brien, said a project of this scale would open significant industrial opportunities for Gippsland while mitigating carbon emissions. "Once you factor carbon capture and storage into the project, there is no reason to oppose what would effectively be an environmentally friendly project that will help us create jobs, boost exports, and help us set up a hydrogen economy in Gippsland."

"Research shows the seabed in the Gippsland basin is well suited to carbon storage, and the onus is on the Allan Labor government to ensure this critical project comes to fruition," Mr O'Brien said.

Pictures from Martin Cameron MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com