Australia’s Origin Energy ORG.AX said on Wednesday it has signed a preliminary deal with the Port of Townsville to handle exports from a green hydrogen project in Queensland, aiming to start shipping the fuel from the mid-2020s.
Origin is working with Japan’s Kawasaki Heavy Industries (KHI) 7012.T on the project that aims to produce 36,500 tonnes per annum of green hydrogen, using renewable energy to power an electrolyser to split water.
The Queensland state-owned Port of Townsville will work with the two companies on a potential expansion of the port and development of liquefaction facilities and a new berth to handle KHI’s liquid hydrogen carriers.
“Townsville is ideally placed to develop a liquid hydrogen facility due to its deep-water port, industrial-zoned land, availability of skilled workers and nearby renewable energy and sustainable water resources,” Origin’s future fuels head Felicity Underhill said in a statement.
KHI is set to test the world’s first liquid hydrogen carrier later this year, using the small ship to transport the fuel to Japan from Australia’s Victoria state, where KHI is leading a project that recently began producing hydrogen from brown coal.
Green hydrogen projects are key to helping Japan meet its target of net zero carbon emissions by 2050. They are also crucial to companies like Origin as they work to transition away from fossil fuels to clean energy.
Port of Townsville Chair Renita Garard said Townsville, on Australia’s northeast coast, is a good location for exporting green hydrogen given it is close to Asian markets.
“There will be significant export demand for green hydrogen coming from Asia in the 2030s and even sooner from Japan in the mid-2020s,” Origin’s Underhill said.
