This pilot project is the first step in creating a commercial scale hydrogen supply chain which could lead to billions of dollars in export earnings for Australia and help Japan meet its strategic energy targets for 2030 and beyond, according to Minister for Trade, Tourism and Investment Simon Birmingham.

As global demand for hydrogen continues to grow, strategic investments such as this one have the potential to turn Australia into a major global exporter of hydrogen, particularly to countries such as Japan and South Korea

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In addition, Minister for Resources and Northern Australia Matt Canavan said that this sod turn symbolises new job and investment opportunities for the region, as well as the nation.

He explained that Australia is well placed to become a global leader in hydrogen production and this pilot project is a crucial step towards making this vision a reality. In fact, the Australian and Victorian Governments have committed $50 million each to the $500 million project, which is also supported by the Japanese Government and Japanese industry.

What is more, the use of hydrogen is part of Japan’s vision of a clean energy future and any emissions from the pilot project will be fully offset, with commercial scale operations required to use carbon capture and storage to ensure a low emission source of hydrogen.