Philip Hopkins
GERMAN technology and manufacturing giant Siemens is gearing up to take part in a large electricity terminal and green hydrogen project in Gippsland that would take power from the extensive wind farms planned offshore in Bass Strait.
The company described the project as “supporting the once-in-a lifetime” energy transition in Gippsland.
A massive parcel of land has been set aside on the Gippsland coast to house the electricity terminal and a hydrogen plant that would process the power from the wind farms.
The idea is that when excess generation occurs, it would provide a low-cost solution for producing green hydrogen.
The company said electricity accounted for about 70 per cent of the costs to produce green hydrogen today. The hydrogen could be used to help de-carbonise hard-to-abate sectors such as transport in Gippsland.
Siemens hydrogen executive general manager Andrew McCluskey said hydrogen was one part of the future for the region, which he described as “exciting”.
“There will be billions of dollars’ worth of economic opportunities associated with the offshore wind farms coming onshore,” he told the Gippsland Times.
Mr McCluskey said the project signalled a continuation of its very long involvement with the Latrobe Valley.
“Over a century ago, in 1911, Siemens’ consulting engineers advised the state of Victoria that the Latrobe Valley in Gippsland should be the state’s electricity hub, including advising Sir John Monash on generation,” he said.
“Our technology has supported provided energy to the state since the beginning, but now it’s time to support the energy transition – that’s offshore wind, battery storage, hydrogen, low emissions transport and more. As the largest industrial software, automation and electrification company, our technology can play a substantive role in supporting the next stage of the region.”
Mr McCluskey said in Germany, the town of Wunsiedel was an example of a region redefining itself in the energy transition with an independent energy system based exclusively on renewables and hydrogen.
“Wunsiedel, in Bavaria, produces 100 per cent carbon-neutral power and heat, and has created jobs and posterity. The German town features almost the entire Siemens portfolio, ranging from digital software to medium and low voltage equipment, automation and controls, and a range of smart infrastructure technologies, including fire alarms and extinguishing systems, charging infrastructure, and more,” Mr McCluskey told the Gippsland Times.
The Gippsland project – the terminal project, the hydrogen facility – had yet to be confirmed by VicGrid, but Siemens was keen to partner with developers to provide “best-in-class” technology, he said.
VicGrid is now finalising the route for the 75 kilometres of transmission lines that will link electricity from the onshore terminal to the power grid in the Latrobe Valley, and negotiating with affected farmers and landowners.
Mr McCluskey said the proposed hydrogen plant aimed to produce a green molecule at low cost.
“There is a potential 26 gigawatts of generation offshore. At times the full 26GW will not be required by the grid. Excess wind energy can potentially be used to charge large-scale energy storage systems and to create green hydrogen instead of being switched off or sold to the grid for low and even negative costs,” he said.
“The stored energy then gives flexibility and stability and can be used for transport, even generating power on demand through a fuel cell or gas turbines that are running on 100 per cent hydrogen. This technology is available today.”
Mr McCluskey said there were many technological and energy opportunities in Gippsland. These included offshore wind, the terminal, battery energy storage, the waste-to-energy plant in the Latrobe Valley and even sustainable aviation fuel.
However, hydrogen alone was not the ‘silver bullet’.
“A hydrogen industry will be part of a complimentary mix of outcomes,” Mr McCluskey said – a catalyst, for example, for a kelp industry that could be developed offshore around these new offshore wind turbines. This could help with carbon offsets.
“Kelp helps reduce pollution by absorbing excess nutrients like nitrogen and phosphorous. Kelp forests also reduce coastal erosion by acting as natural coastal buffers by dissipating wave energy,” he said.
“If we produce enough hydrogen at low enough cost by harnessing excess wind energy, we can start exporting it to countries like Japan and Korea,” Mr McCluskey said.
In September, the federal government launched Australia’s new national hydrogen strategy and signed a new bilateral auction agreement with Germany under the H2Global mechanism for $660 million of shares investment in Australia hydrogen projects.
“Rotterdam will be the funnel for Europe, which has a 40 per cent deficit in their hydrogen needs today, let alone if they need it also for power generation and transport. Global demand for hydrogen is expected to grow by 63 per cent by 2030. Energy consumption is projected to triple by 2050,” Mr McCluskey said.
Mr McCluskey said Gippsland was rich with resources, with great potential to contribute to this growing global demand for a cleaner energy future.
“Gippsland was instrumental in electrifying the state of Victoria,” he said, adding the region was now “in the box seat”.
