Port of Newcastle’s Clean Energy Precinct Reaches Key Milestone with Federal Backing

The Port of Newcastle and the wider Hunter region are taking significant strides towards becoming a hydrogen-ready hub, contributing to Australia’s journey towards net-zero emissions. Backed by a $100 million investment from the Albanese Government, the Port’s ambitious Clean Energy Precinct has achieved a major milestone by securing agreements for crucial design work and environmental impact assessments.

The project aims to revitalise a dormant 220-hectare industrial site, transforming it into a centre for clean energy production, storage, transmission, domestic distribution, and international export. This initiative not only signals a shift towards sustainable energy but also promises economic rejuvenation for the region.

Infrastructure, Transport, Regional Development and Local Government Minister Catherine King highlighted the project’s significance, stating that repurposing legacy infrastructure is pivotal in positioning Australia as a renewable energy leader. “Our investment supports the nation’s transition to net zero while creating jobs and economic opportunities in the Hunter region,” she said. “This project will help Australia become a global leader in technologies that reduce carbon emissions, including hydrogen and green ammonia.”

Climate Change and Energy Minister Chris Bowen echoed these sentiments, emphasising the Hunter’s longstanding role as an industrial powerhouse. “The Port of Newcastle is ideally situated to support the decarbonisation of heavy industry and connect Australia’s renewable resources to the world,” he remarked. “The Government is committed to helping regions like the Hunter seize the economic and employment opportunities presented by affordable and reliable renewable energy.”

The project is a collaborative effort with the New South Wales Government, delivered through a Federation Funding Agreement Schedule. The initiation of Front-End Engineering Design (FEED) and Environmental Impact Statement (EIS) studies builds on prior efforts by the Port, including public consultations and feasibility studies. The Port will now engage in formal community consultation and further industry engagement to advance the project.

Federal Member for Newcastle Sharon Claydon expressed optimism about the economic boost the precinct would bring. “Newcastle and the Hunter have powered Australia for generations,” she said. “This project ensures we will continue to do so as we lead the transition to net zero. Establishing the Port as a hydrogen exporter will protect and create good local jobs into the future.”

NSW Minister for the Hunter Yasmin Catley highlighted the region’s pivotal role in the state’s energy transformation. “Our energy market is evolving, and we’re at the forefront,” she stated. “This project will support nearly 6,000 local jobs and inject billions into the regional economy. Today’s announcement paves the way for a bright future for the Hunter.”

Local Member for Newcastle Tim Crakanthorp emphasised the area’s readiness for such an initiative. “I’ve worked closely with the Port of Newcastle over the past decade to support their diversification away from coal,” he said. “With Newcastle’s existing infrastructure and skilled workforce, there’s no better place in NSW for this precinct.”

Craig Carmody, CEO of the Port of Newcastle, outlined the project’s economic impact. “The Clean Energy Precinct is expected to support around 5,800 jobs during construction and contribute an estimated $4.2 billion to the Hunter regional economy,” he explained. “The FEED and EIS studies will inform future site development, including infrastructure for electrical systems, water services, storage, and pipelines.”

Pending necessary approvals and legislative requirements, production partners KEPCO are slated to begin construction of facilities in 2027, with the precinct expected to be operational by 2030.

For more information on the Clean Energy Precinct, visit www.portofnewcastle.com.au/landside/major-projects/clean-energy-precinct.