Origin’s hydrogen delay

Energy giant backs strategic export hub

ENERGY giant Origin has delayed planning for hydrogen exports from Townsville as questions emerge around infrastructure readiness and the need to manage multiple players.

Already Origin, Arc Energy and Edify Energy have announced their interest in developing Townsville projects, while the port has revealed that other companies are also interested.

Origin announced last year it had completed a Townsville feasibility study for an initial scale 300MW, 36,000-tonnea-year plant with Japan’s Kawasaki Heavy Industries and would begin front-end engineering design (FEED) this year.

But that pre-project design planning has been put on hold.

An Origin spokeswoman told the Bulletin that Townsville remained a strategic centre for the company due to its location and access to abundant renewable resources.

“We continue to work with Kawasaki Heavy Industries and Port of Townsville under our MOUS to research options for green hydrogen export in the region,” the spokeswoman said.

“We have decided not to pursue FEED this year for a semi-commercial scale project in favour of rescoping the project to potentially support a larger-scale facility to be delivered in a slightly later time frame.”

First exports had been set for the mid-2020s.

Origin’s project involves developing a hydrogen production facility outside the port and piping the gas to liquefaction units and storage tanks in the port.

Kawasaki has developed Japan’s first industrial-scale hydrogen liquefaction system and is in the final stages of trialling the transport of Australian-produced liquid hydrogen on the world’s first hydrogen carrier ship.

While it is believed Origin and the port, which is just over midway through an expansion project due to be completed in 2023, were unable to meet Kawasaki’s time frame, it is understood the port is also having to consider accommodating multiple players.

A port spokeswoman said they were excited to be working with Origin. Their commitment to investigate a larger commercial scale facility was important for Townsville, the spokeswoman said.

“The port has signed MOUS to export hydrogen with Origin and Ark Energy and we are working with a number of other companies that have expressed interest (in) exporting hydrogen through Townsville port, underlying the strategic importance of the city for this emerging industry,” the spokeswoman said.

“We have existing state and federal EIS approvals for the Port Expansion Project, which gives Townsville a significant advantage for new hydrogen and other projects that are currently under investigation.”

The spokeswoman said the world’s ambitions for reducing emissions continued to grow and Townsville would be at the forefront in developing this fuel of the future.