Construction has commenced on a new gasification facility in Victoria as part of the world first Hydrogen Energy Supply Chain (HESC) Pilot Project.

Located in the Latrobe Valley, around two hours from Melbourne, the new gasification facility will convert brown coal into hydrogen gas, which will then be liquified and shipped to Japan.

The HESC Pilot Project will boost Victoria’s industry knowledge and expertise in the production and use of hydrogen, positioning Victoria at the forefront of the hydrogen industry which is expected to be worth $2.5 trillion globally by 2050.

The HESC Pilot Project is being developed by a consortium of top energy and infrastructure companies, including Kawasaki Heavy Industries, J-Power, Iwatani Corporation, Marubeni Corporation, Sumitomo Corporation and AGL.

It is supported by the Victorian, Commonwealth and Japanese governments.