Australia’s BlueScope Steel and Shell Energy Operations have signed a Memorandum of Understanding (MoU) to explore and develop renewable hydrogen projects at BlueScope’s Port Kembla Steelworks in New South Wales.
Using a 10MW pilot-scale renewable hydrogen electrolyser, BlueScope’s Port Kembla Steelworks will investigate and test the use of green hydrogen in its blast furnace. The goal is to show that hydrogen can be used to make steel with lower emissions. Hydrogen could also be fed into a pilot DRI plant, which could be used for other purposes.
BlueScope and Shell will also collaborate with other organizations in the Illawarra to create a “hydrogen hub.” Hydrogen supply and offtake, renewable energy supply, and hydrogen and electricity infrastructure are all part of this project’s scope. Additionally, the project will look into the logistics infrastructure needed for a commercially viable hydrogen supply chain in the Illawarra.
The Illawarra has a wide range of industry, energy, transportation, and mining partnerships, as well as research and academic collaborations, which puts it in a good position for further collaborations to develop hydrogen technology and support the region’s decarbonization efforts.
BlueScope Chief Executive, Mark Vassella, said, “we are excited about the potential for these projects and are pleased to be working with Shell which brings global expertise in developing new energy technologies, including green hydrogen.
“Any future potential hydrogen hub in the Illawarra will need broad support from governments, regulators, customers and suppliers. We are looking to the future; short, medium and long term and we are looking forward to seeing what a pilot hydrogen electrolyser can teach us about the production, storage and handling of hydrogen and, importantly, how hydrogen will behave in a blast furnace.
“The projects announced today demonstrate BlueScope’s commitment to taking real action on climate change,” Mr Vassella said.
Shell Australia Chairman Tony Nunan said: “Hydrogen has the potential to play a key role in decarbonizing hard-to-abate sectors, many of which are central to Australia’s economic and social development. Shell looks forward to working with BlueScope and leveraging each other’s strengths and capabilities to explore the development of integrated hydrogen supply chains. Collaborations such as these are fundamental to accelerating progress towards a net-zero emissions future.”
BlueScope has previously announced a climate investment program worth up to $150 million over the next five years, which includes the MoU collaboration.
