Minister Intervenes, Approves Hastings Hydrogen Facility

Victoria’s contentious hydrogen production facility slated for the Mornington Peninsular has cleared a planning hurdle after the minister stepped in. The state’s planning minister Sonya Kilkenny followed a similar move by her predecessor to intervene and approve the next part of the Hastings Hydrogen Production and Liquefaction Facility. Kilkenny said it was not necessary to consider the concerns raised in 11 submissions regarding the plan. “The concerns raised have been adequately addressed through conditions of the incorporated document, and it is unlikely that further exhibition of the amendment would identify any new issues which have not already been considered,” the Department of Transport and Planning (DTP) said as part of a statement regarding the minister’s reasons for intervention. Amendment C304morn applies to what is currently known as the Hydrogen Liquefaction and Loading Terminal at the north-west corner of Bayview Road and Long Island Drive at Hastings, about 77km south of the Melbourne CBD. It will change an existing incorporated document (Hydrogen Liquefaction and Loading Terminal—Pilot Project, Hastings, July 2018) approved in November of 2018. The planning minister at the time, Richard Wynne, fasttracked approval for the 2018 Incorporated Document, bypassing the Mornington Peninsula Shire. The latest approval means a production facility can be developed on the site next to the existing liquefaction facility. However, the incorporated document requires detailed plans, similar to the ones proposed by Energys Australia in October of 2023, to be submitted. If approval is granted for these detailed plans then the facility can be built. Energys Australia Pty Ltd via Spiires requested that the planning minister intervene. ▲ The hydrogen liquefaction facility under construction at Hastings. An incorporated document for the same site was approved in February of 2023 for the Hastings Energy Generation Facility with a 40MW capacity. As well, the minister approved another amendment, on July 4 of this year that allows the DTP’s fasttrack pathway, the Development Facilitation Program, to include gas energy projects. The Victorian Renewable Hydrogen Industry Development Plan pinpointed Hastings as a key site for hydrogen generation and liquefaction. As well as the Hastings Hydrogen Production and Liquefaction Facility, the Hydrogen Energy Supply Chain (HESC) project to produce hydrogen in Victoria and export it to Japan was also earmarked for Hastings. Two major consortia are behind the HESC—J-Power and Sumitomo Corporation for the production of clean hydrogen from Latrobe Valley coal; and Japan Suiso Energy (JSE), which comprises Kawasaki Heavy Industries and Iwatani Corporation, which would handle liquefaction and shipping to Japan. The Federal and Victorian governments each added $50 million into the project and the Japanese Government promised $2.35 billion if it proceeds. However, in 2024, conflicting reports emerged when Kawasaki Heavy Industries announced in Japan it would look towards domestic generation options. It announced in December of 2024 that it would look to finish the commercial demonstration stage in Japan. J-Power said on July 1 that it would dismantle the Latrobe Valley’s hydrogen production pilot plant in September of this year.

Minister Intervenes, Approves Hastings Hydrogen Facility

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Minister Intervenes, Approves Hastings Hydrogen Facility

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