THE PORT of Newcastle unveiled its final masterplan for its Clean Energy Precinct (CEP) on Friday (4 July). The precinct - due to become operational by 2030 - is in the final stages of both FEED and EIS studies, making it the most advanced project of its kind in the country.
Fresh from announcing $432 million in federal funding for a green hydrogen facility at Oreca near Newcastle earlier that day, Minister for Climate Change and Energy Chris Bowen officially unveiled the port’s clean energy masterplan - citing the federal government’s investment “a big vote of confidence for Newcastle” and “a big vote of confidence in Australia’s renewable energy future.”
Following the official unveiling, DCN spoke with port of Newcastle CEO Craig Carmody about what the CEP means for the port, the Hunter region, and Australia.
When asked about maritime opportunities as green energy exports grow, Mr Carmody said the focus remains largely landside for now. “Our strategic partner in shipping is MOL - they’re deep into R&D, not just on fuels but on vessels and infrastructure too,” Mr Carmody said. He noted that global standardisation remains a major hurdle. “The pipes and the plugs we use here have to be the same in Busan, in Singapore, in Tokyo,” he said. “Until we have those standards, you can’t have a free-for-all where every ship is different.” With more than 4500 coal ships visiting Newcastle each year, Mr Carmody said clean energy shipping would require a similar level of consistency: “Every coal ship that comes in here is the same - that’s what we’re going to need for clean energy.”
Regarding any challenges the project faced, Mr Carmody said that while infrastructure development is progressing as planned, the real hurdle lies in attracting investment for large-scale clean energy production.
“From an infrastructure point of view, it’s as we hoped - this is what we do for a living,” he said. “The bigger challenge is the investment piece.”
While global demand for clean energy continues to grow, Mr Carmody said the competitive advantage once enjoyed by Australian ports is at risk of fading fast.
“Everybody wants clean energy. Everybody wants to buy clean energy. But getting investment in production is proving difficult.”
Mr Carmody cited the US Inflation Reduction Act (IRA) as a game-changing policy that siphoned capital away from Australian projects.
“Under Biden, the IRA was just too competitive - tax breaks, major federal support, and trillions of dollars. We couldn’t match that.”
With the recent passage of a tax bill under President Trump that stripped away key clean energy incentives, Mr Carmody said Australia may now have an opportunity to re-engage investors.
“Even this morning I was sending a message to all Australian trade commissioners: ‘Can you please pass on a message - which is, what’s your plan B? Because we’re still here’.”
Mr Carmody reflected on the port of Newcastle’s dominance in coal exports, noting that its success stemmed from geography and global market dynamics - not strategy.
“We were the world’s leading coal exporter for 25 years, but that was luck - geology, deep water, and the rise of the Asian middle class.
“But clean energy is different. You don’t need a deposit - you need electricity and water. Anyone can do that.”
Mr Carmody warned that Australia can no longer rely on legacy advantages or assume international partners will come knocking.
“We have to be a lot hungrier about what we’re trying to do in clean energy,” he said. “Australia can’t wait anymore.”
The event was attended by more than 45 people from the clean energy, ports, and government sectors, including State Member for Newcastle, Tim Crackenthorp who congratulated the port on the milestone, and Federal Member for Newcastle, Sharon Claydon, who also spoke passionately about the project:
“The port of Newcastle will play a major role in everything we do going forward. This is the most significant clean energy precinct of any port in Australia - hands down. And we’re going to show not just this nation but the world how we do transition in a methodical, orderly and thoughtful way so that everybody gets to benefit.”