Glenelg Shire Mayor welcomes progress in Portland project

Australian renewable hydrogen project developer, Countrywide Hydrogen is pleased to announce the signing of a Letter of Agreement with DGA Energy Solutions Australia Pty Ltd to jointly conduct and fund studies for Countrywide’s Portland Green Hydrogen Project.

DGA is part of the Mitsubishi Corporation’s Group of Companies and represents the Australian arm responsible for renewable energy and green hydrogen related business development.

For some years, Countrywide has been progressing the development of a renewable hydrogen project in Portland.

This agreement sets out the two companies’ intention to undertake a feasibility study for a two-stage hydrogen production project utilising Countrywide’s previous groundwork in Portland.

Stage 1 of the project includes a proposed 10MW electrolyser with production destined for domestic supply, with Countrywide and DGA focusing on Countrywide’s long-seeded goal of decarbonising the Australian road transport industry and continuing the company’s Hydrogen HyWay rollout.

Stage 2 includes a proposed mega-scale green hydrogen project with exports to Japan and Korea, leveraging DGA and Mitsubishi’s financial and commercial expertise in both renewable energy and hydrogen related businesses. Renewable energy for the green hydrogen production will be sourced locally from both onshore and offshore wind farms, and potentially solar.

Countrywide managing director Geoff Drucker said this alliance with DGA was a testament to Countrywide Hydrogen’s project development and delivery capabilities.

“Gaining DGA’s support firstly for a domestic supply project in Portland to mirror our Hydrogen Hyway rollout in Tasmania, and then followed by a significant export project in Stage 2, is what we have been strategically seeking,” he said.

“Our comprehensive national decarbonisation plan in the short term to be followed by international expansion.

“In terms of the latter, the power of DGA’s parent, Mitsubishi Corporation, will be instrumental in securing offtakes in Japan and Korea for Stage 2 delivery.”

It was in 2021 that Mitsubishi announced its ‘Roadmap to a Carbon Neutral Society’ which includes establishment of energy-transformation investment guidelines and commitment to new greenhouse-gas emissions reduction targets, including halving greenhouse-gas emission by 2030 and net zero emission by 2050.

Under these investment guidelines, a total JPY2 trillion (equivalent to A$20 billion) is budgeted for energy-transformation related investment by 2030.

One of the key focus areas is renewable energy and hydrogen/ammonia. Under this initiative, DGA as a power business arm of Mitsubishi, has been assigned to focus on exploring green hydrogen and ammonia production for both domestic and export use.

DGA Energy Solutions Australia managing director Kentaro Matsumura said they believed Australia would be a key market to address the demands in North Asia as well as Japan, given its proximity to the region.

“The end goal for DGA is to export hydrogen from Australia to Countrywide and Mitsubishi’s DGA Energy Solutions Sign Agreement To Explore Portland Hydrogen Project Japan, but it is important to note we believe it is critical to start with local production for local consumption, focusing on the Australian domestic market initially,” he said.

As part of the agreement, the companies intend to apply for funding under the Victorian Government’s Portland Diversification Fund.

The fund is a $7.5million program with the aim of facilitating diversification of the economic base of the Glenelg Shire by attracting new investment and supporting businesses to diversify and improve its productivity and competitiveness.

Glenelg Shire Mayor Karen Stephens (pictured) said the Green Triangle, which embraces Glenelg Shire and several neighbouring municipalities spanning across the South Australia and Victorian borders welcomed Countrywide’s initial plan to decarbonise heavy road transport with hydrogen because it complements their common goals and quest to deliver tangible emissions abatement.

“An export-scale development promises jobs, investment and growth for our community,” Mayor Stephens said.