A major new Port Kembla hydrogen project has won funding from the NSW Government, and will aim to develop the industrial centre as a green energy hub.
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At Cringila on Friday Treasurer and Energy Minister Matt Kean announced BOC Gas was one of the first two "hydrogen hub" projects to win funding, for its plan to build a 10MW electrolyser which would make hydrogen to power heavy vehicles.
Up to $64 million of funding would be available for two green hydrogen hub projects - BOC in the Illawarra, and another in Moree - while applications have opened for $1.5 billion in concessions for large-scale green hydrogen producers.
The BOC project in the Illawarra would receive $28.5 million of this provided the project progresses to development.
"This funding will see the first green hydrogen produced in the Illawarra, with at least four refuelling stations set to be developed in and around the Illawarra which can power up to 40 trucks and buses in the region," Mr Kean said.
"Green hydrogen can help drive deep decarbonisation in hard-to-abate market segments within the transport, industrial and energy sectors which account for around 18 per cent of NSW's annual emissions."
An electrolyser uses an electric current to separate the hydrogen atoms from water. The Mercury understands BOC intends the power for this project will be all renewable energy - not from a generator built on site but from within the region.
Buses powered by hydrogen fuel cells have started arriving in Australia and Mr Kean said the hydrogen incentives were internationally competitive and would allow NSW to compete with US Government funding for projects, as the US scheme ends in 2030.
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