The odds are shortening on the establishment of a green hydrogen hub on the site of the former Liddell power station site in coming years.
AGL and Fortescue Future Industries (FFI) have been investigating the project's feasibility since late 2021. Both parties agree the potential project ticks many of the boxes needed to justify its existence.
AGL chief operating officer Markus Brokhof told the Newcastle Herald recently that he expected there would be a significant announcement on the project later this year.
"At the end of the day we need to understand the financials on both sides. There also needs to be a bit of lead time in order to satisfy the energy needs of FFI in determining the size of the electrolyser," he said.
"I think we will have a bit more clarity this year in how we would like to move forward. I'm positive because I think there are a lot of advantages when it comes to the Liddell site and FFI shares our view that the site has a lot of merit to realise."
The joint venture project had the potential to create about 1000 jobs. In a sign of confidence, two of Japan's biggest energy companies - Inpex Corporation and Osaka Gas joined an expanded feasibility study late last year.
If it proceeds the project would form part of an emerging Hunter hydrogen export hub, which has also attracted interest from potential customers in South Korea and Singapore.
The plant's hydrogen would also be used to supply domestic industry. AGL confirmed in May that water saved would be almost equal to what is needed to replace the plant's coal-fired output as green hydrogen.
The 2000 megawatt capacity Liddell power station and the neighbouring Bayswater plant previously consumed a combined 62,000 megalitres of water annually. The closure of Liddell will result in a saving of 8000 megalitres.
The green hydrogen project would be part of the evolving Liddell clean energy industrial hub. Agriculture, firming technologies, composting, coal ash recycling, green metals and advanced manufacturing are among other projects planned for the site.
It is expected the 10,000-hectare Hunter Energy Hub would function as a major catalyst for future economic growth in the region.
AGL's indicative vision for the first phase of the project between 2022 and 2030 will occur while Bayswater power station is still operational.
