WORLD PROSPECTS
New life for Latrobe lignite
C
onstruction has started on a A$500 million
($353 million) pilot project looking at the
feasibility of turning brown coal from the
Latrobe Valley, in Victoria, Australia, into hydrogen
for liquefaction and export to Japan.
Works have begun on liquefaction facilities
linked to the Hydrogen Energy Supply Chain
(HESC) project at Port Hastings, Victoria, which the
government says has the potential to create A$2
billion in exports for Australia.
On the other side of Australia, Fortescue Metals
recently partnered with CSIRO on hydrogen
technologies to support the development of new
industries, create jobs and pave the way for low
emissions export opportunities for the country.
Hydrogen production operations for the pilot
phase of HSEC have been established at the AGL
Loy Yang mine, with operations leveraging existing
coal gasification technologies adapted specifically
for Victorian brown coal. Hydrogen will then be
transported to a liquefaction and loading terminal
at the Port of Hastings Victoria, Australia.
“Once converted to liquid, hydrogen will be
shipped to Japan using a world-first, innovative
liquefied hydrogen carrier, purpose built for
hydrogen transport,” the HESC said.
Australia’s Minister for Resources and Northern
Australia, Matt Canavan, said the sod turn
symbolised new job and investment opportunities
for the region, as well as the nation.
“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.
The Australian and Victorian Governments have
committed A$50 million each to the A$500 million
project, which is also supported by the Japanese
Government and Japanese industry,” he said.
“This project promises to be of huge benefit to
both nations and particularly the state of Victoria,
which has the opportunity to develop an
alternative and value-adding use of its abundant
brown coal reserves in the Latrobe Valley.
“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.”
Minister for Trade, Tourism and
Investment, Simon Birmingham, said the
project was the first of its kind in Australia
and was built on the strong and long-
standing trade partnership between
Australia and Japan.
“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,” he said.
“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.
“Australia has long been a reliable supplier of
energy needs and there is no doubt that we are
uniquely placed to continue to meet those global
needs by becoming a leader in hydrogen energy.
Future commercial scale operations in the Latrobe
Valley and around the country will help transform
Australia into a hydrogen powerhouse, delivering
significant economic benefits and thousands of
extra jobs for Australians.”
FedNor invests in NORCAT growth
T
he Government of Canada, through FedNor,
has agreed to invest C$1.4 million ($1.07
million) in a new “state-of-the art surface
facility” at NORCAT’s Underground Centre in
northern Ontario.
The government said this facility will provide
innovative mining businesses and entrepreneurs
in northern Ontario with “a new space to share
ideas, build partnerships, conduct research, and
bring new technologies to market”.
NORCAT’s Underground Centre already
provides companies with a place to
innovate and enhance the productivity,
safety and competitiveness of the
mining industry. The company, earlier
this year, announced plans to expand
the centre in response to the
forecasted demand of the global
innovation ecosystem. This new facility
will further bolster its industry offering.
“The new 12,000 sq.ft (1,115 sq.m)
facility will be used by innovative
mining technology companies to
4 International Mining | AUGUST 2019
develop, test and demonstrate innovative and
emerging technologies in an operating mine
environment,” the government said. “It will offer
shared spaces, offices, meeting rooms, on-site
personal protective equipment, first aid rooms,
workshop, lunch room, changing rooms, showers
and personal storage amenities.”
The announcement was made last month by
Paul Lefebvre, Member of Parliament for Sudbury,
on behalf of the Honourable Navdeep Bains,
Minister of Innovation, Science and Economic
For funding purposes, the pilot phase is split
into different delivery portions – a Japanese funded
portion and an Australia funded portion.
The Australia funded portion is coordinated by
Hydrogen Engineering Australia (HEA), a
consortium comprised of project partners
including Kawasaki Heavy Industries (KHI), J-
POWER, Iwatani Corporation, Marubeni
Corporation and AGL. This portion involves refining
the hydrogen gas in the Latrobe Valley,
transporting it to the Port of Hastings, converting it
to liquid and then loading it onto the marine carrier.
The Japan funded portion of the HESC pilot
phase is coordinated by the CO2-Free Hydrogen
Supply Chain Technology Association (HySTRA),
acting on behalf of KHI, J-POWER, Iwatani
Corporation and Shell. The Japanese funded
portion includes converting brown coal to gas in
the Latrobe Valley, transporting liquid hydrogen by
sea and then unloading it in Japan.
The HSEC project will be developed in two
phases. The pilot phase will demonstrate a fully
integrated supply chain between Australia and
Japan over one year by 2021. The decision to
proceed to a commercial phase will be made in the
2020s with operations targeted in the 2030s,
depending on the successful completion of the
pilot phase, regulatory approvals, social licence to
operate and hydrogen demand.
www.hydrogenenergysupplychain.com
Development, and Minister responsible for
FedNor.
Lefebvre said: “Supporting Canadian
innovation is a key priority of our government,
which is why we made it a pillar of our Innovation
and Skills Plan and Prosperity and Growth
Strategy for northern Ontario. This strategic
investment in NORCAT will help shape the future
of innovation and technology in the mining
industry, and further strengthen Canada’s
reputation as a global leader in mining.”
Don Duval, CEO of NORCAT, said: “A
longstanding supporter and partner, the
Government of Canada continues to recognise
the value of NORCAT and the work we
do to spur innovation, support skills
training and help businesses develop
and adopt new technologies and
processes. As northern Ontario’s
largest innovation centre, we are
thrilled to add this new above-ground
facility to our Underground Centre that
will help cement our reputation as a
global destination for mining research
and innovation.”
www.norcat.org; www.canada.ca