Regions like the Hunter have no time to lose if they are to realise their competitive advantage in the emerging hydrogen economy, the head of hydrogen at global management consultancy McKinsey has cautioned.
Bernd Heid said Australia's production potential for low-cost renewable energy put it on a par with the Middle East in its ability to competitively produce decarbonised hydrogen to supply a market expected to grow seven- or eight-fold by 2050.
But regions like the Hunter were not the only players seeking a piece of the action.
Despite the urgency, it is unlikely that hydrogen will be produced in the Hunter before 2025-26.
The Hunter green hydrogen hub, to be based on land owned by the Port of Newcastle, is still in the early planning stages.
A port spokesman confirmed that the hub was not due to be operational before the middle of the decade.
The Hunter Power Project at Kurri is among the projects that have been linked to Hunter hydrogen hub.
The plant will initially run on gas before hydrogen is gradually introduced to the fuel mix. It is envisaged that new hydrogen supply pipelines will need to be built from the port to Kurri.
"The Hunter Power Project was one of many projects the feasibility study confirmed may be supplied. We continue to work with a range of commercial partners for future application, for both domestic supply and export industries," a port spokesman said.
Parliamentary secretary for the Hunter Taylor Martin, who chaired an Upper House committee into the development of a hydrogen industry, said the hydrogen economy was dependent on supply and demand dynamics.
"The state's hydrogen strategy is about reducing the cost of hydrogen down towards $2 a kilogram. It's all well and good to have a strategy and a white paper but you have got to have a market. The government recognises that we need to play a role in this embryonic stage of bringing supply and demand together," he said.
"We are still in the early stages but it's progressing as more operators start to provide details of their strategies."
WHAT DO YOU THINK? We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on the Newcastle Herald website. Find out how to register so you can enjoy civil, friendly and engaging discussions. Sign up for a subscription here.
