Japanese government funds green hydrogen export project from South Australia

16 Nov 2021

The South Australian Government welcomes the Japanese Government awarding funding to Marubeni Corporation for a project to export green hydrogen produced in South Australia to the Indo-Pacific region.

Japan’s Ministry of the Environment has selected Marubeni Corporation’s hydrogen production project in South Australia as a pilot project, as part of a program looking to cooperate with developing countries to reduce greenhouse gas emissions.

At the COP 26 talks in Glasgow on 11 November, the project was showcased by the Japanese Ministry of the Environment in a presentation titled “Building global supply chain of Green hydrogen to support the energy transition toward a decarbonised society”.

“This shows the success of the Marshall Government’s Hydrogen Action Plan in attracting investment, working with critical trading partners such as Japan,” said Minister for Energy and Mining Dan van Holst Pellekaan.

“For a number of years, we’ve been building relationships with key governments and companies who are interested in hydrogen produced by renewable energy. It’s wonderful to see these partnerships solidifying into investments.”

Marubeni will be procuring green hydrogen derived from renewable energy in South Australia and is working with the South Australian Government on project development, including site selection.

The project has been showcased as part of COP26 in Glasgow held on 11 November and hosted by the Ministry of the Environment of Japan (MOEJ).

Minister of the Environment, Japan, Tsuyoshi Yamaguchi, said, “Today’s side event is a great start to our bilateral cooperation between Japan and Australia to expand the green hydrogen market and build an international supply chain in the Indo Pacific area, including the island countries in the Pacific.”

The event included an address from the Hon David Speirs, Minister for Environment and Water and the Hon Angus Taylor MP, Federal Minister for Energy and Emissions Reduction.

Minister for Trade and Investment Stephen Patterson said he was delighted that South Australia and Japan are once again collaborating and working together to create a more sustainable future for their regions.

“South Australia and Japan’s partnership on green hydrogen projects continues to gather momentum and I’m delighted that we will be further collaborating on realising both Australia and Japan’s goal of creating a carbon-neutral society through the export of low-cost, green hydrogen, produced by renewable energy resources from South Australia,” Minister Patterson said.

“Marubeni is an important partner for the South Australian Government in supporting and showcasing that low-cost hydrogen production can be achieved right here in South Australia. It’s an exciting time for both our regions as we aim to reach a sustainable future.”

Marubeni selected South Australia as its preferred location to capitalise on its available and high-quality natural resources, along with the state’s developed infrastructure.

Fewer than five projects were announced yesterday on the Japanese Pavilion side-event, as part of COP26, looking at ways to further hydrogen technology in export markets.

Minister van Holst Pellekaan said South Australia is in a unique position with an abundance of wind and sun already being converted to renewable energy.

“The Marshall Government has big ambitions of net-100% renewables by 2030, and 500% of current grid demand in renewable energy by 2050. That’s thousands of jobs expanding renewable energy for decades in South Australia,” said Minister van Holst Pellekaan.

“It is an exciting opportunity for South Australia to showcase to the world that we are ideally located for low-cost, clean hydrogen production to help others to reach their carbon emissions reduction targets.

“The Marshall Government is securing our future harnessing our abundant renewable energy to become a renewable energy exporter, cutting emissions here and abroad,” Minister van Holst Pellekaan said.

Both Minister Patterson and Minister van Holst Pellekaan, said they are looking forward to working with the Japanese government and industry representatives to progress the project.

“We congratulate the Japanese government and the Marubeni Corporation, along with its industry partners, on this exciting venture,” said Minister Patterson and Minister van Holst Pellekaan.

For further information on renewable energy projects, visit www.invest.sa.gov.au/projects