Investment in hydrogen hubs around Australia is seeing upgrades at regional ports to handle increased capacity as well as new clean energies like hydrogen.
The federal government is investing more than $500 million for regional hydrogen hubs across Australia, including in the Pilbara, Kwinana, Gladstone, Townsville, the Hunter, Bell Bay, and Port Bonython in the Upper Spencer Gulf.
Recently, the federal and South Australian governments finalised a grant agreement to develop the Port Bonython hydrogen hub near Whyalla, with both investing $100 million to develop infrastructure at the port and prepare it to become SA’s first large-scale hydrogen export terminal.
The funding will be used to develop common-user infrastructure such as upgrades to the deep-sea terminal, pipelines, storage facilities, and access roads.
Along with private sector funding, the redeveloped Port Bonython is expected to host projects worth about $13 billion and could generate up to 1.5 million tonnes of green hydrogen by 2030.
The port, which is located in South Australia’s Eyre Peninsula region, currently exports products from the Cooper Basin oil fields, with major commodities handled including crude oil, liquid propane, and butane.
SA Premier Peter Malinauskas said with the official green light to get the project underway, it would transform the nature of the port so it was equipped to not just produce hydrogen but potentially export it in the future as well.
The Port Bonython jetty upgrade has also been allotted more than $30 million by the SA government and will comprise the refurbishment of its key structural elements and other works required to extend its operational life by 40 years.
Upgrades at the Port of Townsville are currently ongoing as part of a $232-million channel widening project, having hit the halfway mark in April 2023 with more than 1.721 trillion cubic metres of dredge material removed from the Platypus channel.
This enormous undertaking involves 1,247 barges being loaded and unloaded in the reclamation area.
The port upgrades are a component of the $1.6-billion port expansion project which includes channel widening and deepening, land reclamation, and construction of a new outer harbour, six new berths, and other associated infrastructure.
The 10-metre high, 2.2-kilometre-long rock wall was built in June 2021 with about 900,000 tonnes of rock provided by local suppliers.
Expansion of the port is seen as necessary by the port’s authority, as trade volumes through the port are expected to triple over the next 30 years.
Port of Townsville chief operating officer Drew Penny has noted the port expects to handle the equivalent of more than 200,000 twenty-foot containers a year by 2050.
The widening project will see the shipping channel increase from 92 metres in width to 180 metres at the land end, tapering to 120 metres as it nears the sea-end, with the works expected to be finished in early 2024.
Currently the port can handle vessels up to 238 metres long, but the wider shipping channel will enable access to vessels up to 300 metres long.
The port’s 62-hectare reclamation area will provide space for new industries such as green hydrogen, with the port signing agreements last year with renewable energy companies such as Origin Energy, Ark Energy, and Edify Energy to investigate exporting hydrogen.
Across the country in Western Australia, Port Hedland’s Lumsden Point port development will see the construction of new multi-user facilities, berths, and logistics hub, diversifying trade in the Pilbara and supporting the growth of Australian renewable industries.
The development is backed by $129.1 million in state government funding and includes construction of seawalls, a causeway to connect the wharf to the proposed logistics hub, dredging of the inner harbour, and construction of roads in support of the Pilbara Hydrogen Hub.
Growing the capacity of Pilbara Ports has been identified as a national infrastructure priority by Infrastructure Australia and the Lumsden Point expansion is a strategically significant, critical enabler of key federal and WA government programs.
These include Australia’s Diesel Storage Program, the Pilbara Hydrogen Hub, Critical Minerals Strategy, and Recycling Modernisation Fund, as well as WA’s Australian Climate Policy, Renewable Hydrogen Strategy, Future Battery and Critical Minerals Industries Strategy, State Infrastructure Strategy, and Diversify WA initiative.
WA Premier Roger Cook noted there were enormous opportunities in the Pilbara for job-creating new green industries, but it needed the infrastructure in place to facilitate this growth.
Cook added: “The Lumsden Point development will open up new opportunities in battery metals and renewable energy – ensuring the Pilbara remains the nation’s economic engine room long into the future.”
The first stage of works involved the construction of two seawalls and the new causeway, and was completed in August.
These works will enable dredging of the berth pocket and turning basin, with one contractor engaged to dredge about 1.2 million cubic metres.
Another contract awarded will allow for the construction of both the west and east seawall, with works on the west seawall expected to begin soon after the east seawall is complete.
Pilbara-based businesses will benefit from these works, with 100 per cent of materials, suppliers, and subcontractors to be sourced within the region.
WA Minister for Ports David Michael said it was fantastic to see progress being made at Lumsden Point, with the critical piece of infrastructure essential to facilitating growth and trade diversification in the region.
Michael said: “It will ensure WA is prepared for the future as we transition to net-zero emissions.
“The west seawall contract will provide a boost to the local economy and is an important step to enable future work at Lumsden Point to progress.
“The ultimate development of Lumsden Point is expected to boost Australia’s gross domestic product by $2.1 billion per annum.
“It is expected to save 3.6 million tonnes of emissions by 2055 by supporting direct shipping to the Pilbara and providing a pathway for renewable energy infrastructure.”
