Norway’s Höegh LNG has sealed a long-term charter deal with Australian Industrial Energy (AIE) for floating storage and regasification unit (FSRU) and agreed to collaborate on the future design and development of a new generation FSRU capable of receiving fuels such as green hydrogen.
The 2019-built FSRU Höegh Galleon has been secured to operate at the Port Kembla energy terminal, where AIE has already commenced construction of terminal’s berth facilities, with initial operations expected by mid-2023, making it the first project of its kind in Australia.
Plans for the next generation of FSRU have also been unveiled. The unit would be designed to accept clean fuels that could be used in future green energy supply chains. Initial feasibility work on the new FSRU will now begin, and while the final design is yet to be confirmed, the vessel is expected to have the capability of delivering both natural gas and green hydrogen or derivatives thereof.
“We share AIE’s clean energy vision and look forward to working together on the next-generation capabilities that will ensure that the Port Kembla Energy Terminal remains at the forefront of the energy transition,” said Richard Tyrrell, chief development officer at Höegh LNG.
“With the phasing down of Australia’s fossil fuel industry already underway, the terminal will be critical to ensuring hundreds of thousands of Australian businesses and households avoid supply shortfalls from 2023 onwards,” added Andrew Hagger, chairman of AIE and Tattarang CEO.
