Port of Newcastle considers clean energy precinct pathways

HPC Hamburg Port Consulting (HPC) has completed the final business case for Port of Newcastle’s proposed 220-hectare Clean Energy Precinct (CEP), setting out options for its future ownership, governance and commercial structure.

The study assessed how the development could be taken forward and found that two distinct pathways could create sustainable long-term value. The options give Port of Newcastle scope to decide how active a role it wants to take in the emerging clean energy market.

Located at Australia’s largest port on the east coast, the precinct is intended to support the production, storage, handling and export of clean energy products. These include hydrogen and fuels derived from hydrogen.

The project has been designed around the port’s industrial heritage, location and existing infrastructure, with the aim of connecting Newcastle to future international energy supply chains.

The business case brings together market analysis, commercial design and detailed financial modelling. It considers future demand scenarios, potential revenue, investment requirements and project risks.

It also sets out several conditions regarded as important to the precinct’s long-term value. These include the development of relevant markets, customer commitments and the phased delivery of infrastructure.

Ildo Agnetti, Senior Manager CEP Project at Port of Newcastle, said: “The completion of this business case marks an important milestone for the Clean Energy Precinct. The study has provided valuable insights into potential development pathways and deepened our understanding of the commercial opportunities and considerations associated with the project. It establishes a strong foundation for the next phase of planning and stakeholder engagement.”

The work is intended to inform future investment and development decisions as the port moves towards the next stage of planning. It also gives Port of Newcastle a basis for determining the extent of its own involvement in the precinct.

Christina Prieser, Associate Partner at HPC Hamburg Port Consulting, said: “Ports worldwide are exploring how they can participate in future clean energy value chains. What makes Newcastle particularly compelling is both, the scale of the opportunity and the strategic choices available to the Port. Our analysis shows that different development models can create value, giving Port of Newcastle the flexibility to shape its future role in this rapidly evolving market.”

HPC said the assignment adds to its work in Australia, where it advises ports, terminals and infrastructure operators on strategy, investment planning, operations and digital transformation. The company said the work comes as the region advances major decarbonisation and energy transition initiatives.