Andrew Forrest-backed Port Kembla Power Station to operate on 100% green hydrogen by 2030
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Australian Industrial Power (AIP), an entity of Andrew Forrest’s Squadron Energy, applauded the $30 million commitment by the Federal Government this week towards the proposed Port Kembla Power Station, which is designed to operate on 50% green hydrogen from day one and 100% green hydrogen by 2030.
Federal energy minister Angus Taylor said in an announcement on Tuesday that the project will play a crucial role in reducing market volatility risks in New South Wales by supporting reliable electricity supply and keeping prices low.
Taylor said: “Investment in reliable supply is a critical need, with AEMO forecasting that up to 19,000 megawatts of dispatchable capacity, like gas, is required across the National Electricity Market to support record growth of renewables.
“The Government will continue to work with AIP to assess the project for underwriting support through the Underwriting New Generation Investments (UNGI) program.
“Progressing the AIP gas power station will also support the development of the Port Kembla import terminal, providing a key source for imported gas to increase supply.”
He added that the new gas supply and generation will help “re-establish a strong economy” and make energy affordable for families while “complimenting the world-leading levels of renewables in Australia.”
However, Squadron Energy said in a statement on Tuesday that it was “vitally important to reaffirm this project has a clear vision to create Australia’s largest dual-fuel (gas and green hydrogen) power station to deliver a new source of large-scale, dispatchable, and lower emission electricity” to support the growth in renewable energy.”
Squadron says the project is being configured for the future decarbonisation of the electricity grid, with the aim to supply electricity to the National Electricity Market by the summer of 2024 -2025, subject to planning approvals.
Fortescue Metals Group founder Andrew Forrest said: “As soon as that green hydrogen is available, which we are on schedule to achieve by 2024-2025, the power station, to be licensed for dual fuel, will commence use of green hydrogen,” Dr Andrew Forrest AO said.
While the project is still in the approvals phase, the NSW Illawarra region has been selected as the ideal location for the benefits of being near the new Port Kembla LNG Terminal – which will supply LNG gas to the power station to generate electricity for NSW in the early stages.