Mitsubishi-backed DGA and Countrywide collaborate on Portland Hydrogen Project

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Countrywide's proposed Hydrogen Refuelling Station. Image credit: Countrywide Hydrogen

Australian renewable hydrogen project developer Countrywide Hydrogen has inked a partnership deal with DGA Energy Solutions Australia Pty Ltd, a part of the Mitsubishi Corporation’s Group of Companies.

The collaboration involves a Letter of Agreement (LoA) to jointly conduct and fund studies for Countrywide’s ambitious Portland Green Hydrogen Project.

Countrywide has been actively advancing the development of a renewable hydrogen project in Portland, Victoria, and this agreement solidifies the commitment of both entities to undertake a comprehensive feasibility study.

The proposed two-stage hydrogen production project builds upon Countrywide’s prior groundwork in Portland, the company said in a news release.

The first stage of the project encompasses a 10MW electrolyser, with the produced hydrogen intended for domestic supply.

Countrywide and DGA aim to align their efforts with Countrywide’s longstanding objective of decarbonizing the Australian road transport industry, furthering the company’s Hydrogen HyWay rollout.

In the second stage, the collaboration envisions a mega-scale green hydrogen project with exports targeted at Japan and Korea.

Leveraging DGA and Mitsubishi’s financial and commercial expertise in renewable energy and hydrogen-related businesses, this stage aims to position the project globally.

The green hydrogen production for this stage will rely on locally sourced renewable energy from both onshore and offshore wind farms, and potentially solar.

This collaboration marks a strategic alignment of Countrywide’s renewable hydrogen aspirations with the considerable resources and experience brought in by DGA and Mitsubishi, Countrywide noted.

The joint efforts are expected to drive innovation in sustainable energy and contribute to the growth of the green hydrogen sector both domestically and internationally.

The feasibility study represents a crucial step toward realizing the ambitious Portland Green Hydrogen Project, emphasizing the importance of collaborative efforts in advancing the renewable energy landscape.

Geoff Drucker, the managing director of Countrywide, pointed out that the collaboration with DGA underscores Countrywide Hydrogen’s proficiency in project development and delivery.

“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: our comprehensive national decarbonisation plan in the short term to be followed by international expansion,” he stated.

According to Drucker, this aligns with their strategic goals of implementing a comprehensive national decarbonization plan, initially focusing on local efforts and subsequently expanding internationally.

He also pointed out the role of DGA’s parent company, Mitsubishi Corporation, in securing offtakes in Japan and Korea for Stage 2 delivery.

In 2021, Mitsubishi introduced its “Roadmap to a Carbon Neutral Society,” outlining energy-transformation investment guidelines and committing to ambitious greenhouse-gas emissions reduction targets.

These targets include a 50 per cent reduction in greenhouse-gas emissions by 2030 and achieving net-zero emissions by 2050.

Under these guidelines, a substantial budget of JPY2 trillion (equivalent to A$20 billion) is allocated for energy-transformation-related investments by 2030.

DGA, as a power business arm of Mitsubishi, is designated to focus on exploring green hydrogen and ammonia production for both domestic and export use as part of this initiative.

Kentaro Matsumura, managing director of DGA Energy Solutions Australia, expressed the belief that Australia will play a crucial role in addressing the demands in North Asia and Japan due to its geographical proximity.

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

He clarified that while the ultimate goal for DGA is to export hydrogen from Australia to Japan, they consider it crucial to commence with local production for local consumption, with a primary focus on the Australian domestic market.

This $7.5 million program aims to facilitate economic diversification in the Glenelg Shire, attracting new investments and supporting businesses to enhance productivity and competitiveness.